LONDON: Oil prices slipped on Monday as signs of an economic slowdown amid international trade disputes began to outweigh supply fears stoked by attacks on oil tankers in the Gulf of Oman last week.
Brent futures fell 35 cents, or 0.56 per cent, to $61.66 a barrel by 10:30 GMT, having gained 1.1 per cent on Friday.
US West Texas Intermediate (WTI) crude futures were also down 35 cents, or 0.67 per cent, at $52.16, having firmed by 0.4 per cent in the previous session.
“China’s industrial output growth (is) falling to the lowest level in 17 years amid trade tensions with the US Today, oil markets will have to digest more demand concerns as India implemented retaliatory tariffs on a number of US goods yesterday,” consultancy JBC Energy said in a note.
Also sapping prices was the dim outlook for oil demand growth in 2019 projected by the International Energy Agency (IEA) on Friday, citing worsening prospects for global trade.
Market expectations of a price rise had been shrinking consistently in the period leading up to the attacks.
“Seven consecutive weeks of selling has now reduced the combined long in Brent and WTI crude oil by 41 per cent to 421,000 lots, a near-four-month low,” said Saxo Bank commodity strategist Ole Hansen
“This is before the tanker attacks in the Gulf of Oman briefly boosted prices before being capped again by demand fears and another counter-seasonal rise in US crude oil stocks.” — Reuters
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