You are here: Home » Markets » Commodities » Energy
Business Standard

Oil prices extend falls as economic slowdown worries weigh on markets

The decline followed a slump in global financial markets on Tuesday as concerns over global growth spooked investors into looking for safe-haven assets like government bonds or gold

Reuters  |  Singapore 

Oil prices

prices extended falls from the previous session on Wednesday, as concerns of an economic slowdown weighed on

US Intermediate (WTI) crude futures were at $52.74 per barrel at 0024 GMT, down 27 cents, or 0.5 per cent from their last settlement.

International Brent futures had yet to trade.

The decline followed a 2 per cent fall in futures and a slump in global financial on Tuesday as concerns over global growth spooked investors into looking for safe-haven assets like government bonds or gold.

A global economic downturn is widely expected to also dent fuel demand growth, weighing on prices.

Steen Jakobsen, at Denmark's Saxo Bank, said in a first-quarter 2019 outlook that "the global economy is suffering" but added that China's government will do all it can for stability.

A key support would be for the and to find a solution to their bitter trade dispute, Jakobsen said, but to prevent a sharp economic slowdown, a solution needs to show itself before Feb. 5, the

Should a deal be reached by then, "we will see powerful support for the Chinese economy", he said, as well as the launch of strong stimulus programmes to keep the economy growing.

Despite this, Jakobsen warned that stimulus programmes could not keep the economy going forever, and there was a large risk of another downturn in 2020.

First Published: Wed, January 23 2019. 06:06 IST
RECOMMENDED FOR YOU