Oil prices slip back towards 18-month lows on over-supply
However, oil rebounded 8% on December 26, its biggest rise for two years, but worries about over-supply, especially in the US, still weigh heavily
London — Oil prices fell on Thursday after rebounding 8% in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices, even as a stock market rally offered support. Brent crude oil dropped $1.67 a barrel, or 3.1%, to a low of $52.80 before recovering to about $53.45 by 12.05pm GMT. US light crude oil slipped $1.30 to $44.92 and was last seen 80c lower at $45.42. Oil prices reached multi-year highs in early October but are now approaching their lowest levels for 18 months. Both crude oil benchmarks have lost more than a third of their value since the beginning of October and are heading for losses of more than 20% in 2018. “Fear of a bear market remains in place,” said Johannes Gross at Vienna-based consultancy JBC Energy. Three months ago it looked as if the global oil market would be under-supplied through the northern hemisphere winter as US sanctions removed large volumes of Iranian crude. But other oil exporters ha...
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