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Oil prices slide on swelling U.S. supply, global market slump

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - prices fell 1 percent on Wednesday, weighed down by swelling U.S. inventories and a plunge in global stock markets amid concerns over an economic slowdown.

U.S. Intermediate (WTI) crude futures were at $52.61 per barrel at 0128 GMT, down 64 cents, or 1.2 percent, from their last close.

International Brent futures were down 56 cents, or 0.9 percent, at $61.52 per barrel.

prices were pressured by a weekly report from the (API) that said U.S. crude inventories rose by 5.4 million barrels in the week to Nov. 30, to 448 million barrels, in a sign that U.S. are in a growing glut.

and inventory data is due later on Wednesday.

More broadly, the slide in U.S. oil followed a tumble in global stock markets on Tuesday, with investors worried about the threat of a widespread economic slowdown.

Key to the global economic outlook will be whether the and can resolve their trade disputes. and announced a 90-day truce last weekend, during which neither side will further increase punitive import tariffs.

But U.S. threatened on Tuesday to place "major tariffs" on Chinese goods imported into the if his administration didn't reach a desirable deal with

of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that "most major economies are likely to see decelerating activity", although it added that "a steady stream of monetary and fiscal stimulus measures" was expected to stem the slowdown.

The said it expected Brent and WTI prices to average $70 and $59 per barrel respectively in 2019.

Brent and WTI have averaged $72.80 and $66.10 per barrel so far this year.

(Reporting by Gloystein; Editing by Joseph Radford)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 06:59 IST
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