Oil Prices Slip On Economy Fears, But OPEC Cuts Provide Backstop

By OilandGasMiddleEast.com

Oil markets fell on Friday, pulled down by worries over a global economic slowdown, although OPEC-led supply cuts and US sanctions against Venezuela provided crude with some support. US West Texas Intermediate (WTI) crude futures stood at $52.17 per barrel by 0755 GMT, down 47 cents, or 0.9 percent, from their last settlement. International Brent crude oil futures were down by 48 cents, or 0.8 percent, at $61.15 per barrel.

Weighing on financial markets, including crude oil futures, were concerns that trade disputes between the United States and China would remain unresolved, denting global economic growth prospects. US President Donald Trump said on Thursday that he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to strike a trade deal. If there is no agreement between the worlds two biggest economies, Trump has threatened to increase US tariffs on Chinese imports. Another round of talks is scheduled for next week in Beijing. Crude prices returned to the lows of the week as slower growth prospectscould signal a return (of reasons) for inventories to rise, said Edward Moya, market analyst at futures brokerage OANDA. On Thursday, the European Commission sharply cut its forecasts for euro zone economic growth due to global trade tensions and an array of domestic challenges.

This article provided by NewsEdge.