Approach of Hurricane Michael supports oil price
But the IMF cut its global economic growth forecasts for 2018 and 2019 on Tuesday, raising concerns that demand for oil may also slump
Oil prices slipped in London on Wednesday after the International Monetary Fund (IMF) lowered its global growth forecasts, but markets were supported as Hurricane Michael moved towards Florida causing the shutdown of nearly 40% of US Gulf of Mexico crude production. Brent crude was down 20 US cents at $84.80 a barrel by 9.15am GMT after a 1.3% gain on Tuesday. US light crude was down 15c at $74.81. "Oil prices have stabilised for the moment — between a real and a metaphorical storm," said Fiona Cincotta, senior market analyst at City Index. "Hurricane Michael is powering ahead toward the Gulf of Mexico but it now seems likely to miss the main production areas there. On the other hand, Iran sanctions are only weeks away." The IMF cut its global economic growth forecasts for 2018 and 2019 on Tuesday, raising concerns that demand for oil may also slump. Trade wars and rising import tariffs are taking a toll on commerce, while emerging markets struggle with tighter financial conditions ...
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