Oil is steady but weak fundamentals keep the market under pressure
Brent is hardly changed after plunging in the previous session, but struggling financial markets weigh on sentiment
Singapore — Oil prices steadied on Monday after plunging nearly 8% in the previous session, but remain under pressure with Brent crude below $60 a barrel amid weak fundamentals and struggling financial markets. Front-month Brent crude oil futures were at $59.23 a barrel at 2.02am GMT, up 43c, or 0.7%, from their last close. US West Texas Intermediate (WTI) crude futures, were up 11c, or 0.2%, at $50.53 a barrel. The gains did little to make up for Friday’s sell-off, which traders have already dubbed “Black Friday”. Reacting to Friday’s falls in Brent and WTI, China’s Shanghai crude futures on Monday fell by 5%, hitting their daily downside-limit. Greg McKenna, an Australian-based independent financial analyst, said there had been an “utter capitulation in crude oil” markets. The downward pressure comes from surging supply and a slowdown in demand growth which is expected to result in an oil supply overhang in 2019. Wider downturn Oil markets are also being affected by a downturn in ...
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