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Oil price slips as IMF cuts growth outlook

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LONDON: Oil prices slipped on Wednesday after the IMF lowered its global growth forecasts, but markets were supported as Hurricane Michael moved towards Florida causing the shutdown of nearly 40 per cent of US Gulf of Mexico crude production.


Benchmark Brent crude was down 25 cents at $84.75 a barrel by 07:35 GMT after a 1.3 per cent gain on Tuesday. US light crude was 25 cents lower at $74.71.


The International Monetary Fund downgraded its global economic growth forecasts for 2018 and 2019 on Tuesday, raising concerns that demand for oil products may slump as well.


Trade tensions and rising import tariffs are taking a toll on international commerce, while emerging markets struggle with tighter financial conditions and capital outflows, the IMF said.


“Prices are peaking at the most opportunistic time given the waning global growth narrative,” said Stephen Innes, head of trading APAC at OANDA in Singapore.


In the United States, nearly 40 per cent of daily crude oil production was lost from offshore US Gulf of Mexico wells on Tuesday because of platform evacuations and shut-ins ahead of Hurricane Michael.


Michael has strengthened into an “extremely dangerous” Category 4 hurricane, according to the latest advisory from the US National Hurricane Centre.


Oil producers evacuated personnel from 75 platforms as the storm made its way through the central Gulf on the way to landfall on Wednesday on the Florida Panhandle. — Reuters


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