Oil runs out of steam as grim economic outlook takes hold
Brent loses ground as a deteriorating economic outlook and a surge in US production outweigh expected supply cuts by Opec
Singapore — Oil markets lost steam on Tuesday, giving back earlier gains, as a deteriorating economic outlook and a surge in US production outweighed expected supply cuts by the producer cartel Opec. Brent crude oil futures, the international benchmark for oil prices, were at $66.55 a barrel at 3.13am GMT, down 24c, or 0.4% from their last close. US West Texas Intermediate (WTI) crude futures were at $57.07 a barrel, 13c, or 0.2%, below their last settlement. Oil prices are almost a quarter below their recent peaks in early October, weighed down by surging supply, especially from the US. US crude oil production has soared by almost 25% this year, to a record 11.7-million barrels a day. This comes amid widespread market expectations of an economic slowdown, which saw Asian stock markets tumble on Tuesday, adding to sharp losses on Wall Street during the previous day. As a result, financial traders have become wary of oil markets, seeing further price downside risks from the soaring U...
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