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Oil prices slip on global growth concerns, swelling U.S. supply

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - prices fell on Wednesday, pulled down by swelling U.S. inventories and a plunge in global stock markets as warned of increasing economic headwinds.

International Brent futures were at $60.87 per barrel at 0508 GMT, down $1.21, or 2 percent, from their last close.

U.S. Intermediate (WTI) crude futures were at $52.33 per barrel, down 92 cents, or 1.7 percent.

said WTI could soon test support at $51.75 per barrel, while Brent was threatening to drop below $60 per barrel again soon.

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.

In a sign of easing tensions between the two world's biggest economies, Chinese plans to resume U.S. crude shipments to by March after the Xi-Trump deal at the meeting reduced the risk of tariffs being imposed on these imports, people with knowledge of the matter said.

Yet the truce may not last. 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

China's state council on Wednesday issued guidance to support employment as the economy slows, saying the country should pay "high attention" to the impact on employment from increasing economic headwinds.

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. 10:50 IST
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