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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oil prices dip on worries fuel demand to stall

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SINGAPORE: Oil prices declined on Thursday on lingering concerns that slowing global economic growth may limit fuel demand and after a surprise build in US crude inventories.


International Brent crude oil futures were at $60.90 a barrel at 0745 GMT, down 24 cents, or 0.4 per cent, from their last settlement.


US West Texas Intermediate (WTI) crude futures were at $52.44 per barrel, 18 cents lower from their last close.


“The crude market is now focussing on global growth concerns primarily … It looks to be viewing inventory readings (as) secondary,” said Hue Frame, portfolio manager at Frame Funds in Sydney.


“The IMF downgrading 2019/20 and the continued rhetoric from Davos reiterating that they expect global growth to slow down over the next two years is providing selling pressure in oil,” Frame said.


Earlier this week, the International Monetary Fund (IMF) cut its world economic growth forecasts for 2019 and 2020, due to weakness in Europe and some emerging markets.


World leaders and top executives are meanwhile meeting in Davos, Switzerland, to discuss how to steer policy amid worries of slowing economic growth, damaging trade wars and Brexit.


Oil market sentiment was also weakened by a surprise increase in US crude inventories after refineries cut output, data from industry group the American Petroleum Institute showed on Wednesday.


Crude inventories rose by 6.6 million barrels in the week ended on January 18 to 443.6 million barrels, compared with analyst expectations for a decrease of 42,000 barrels, the API said.


Refinery runs fell by 152,000 barrels per day. — Reuters



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