Oil falls to $53 on economic worries and surging supply
Russian and US output sets new records, as Iraq boosts exports, but may be tempered by Opec’s supply cut from January
London — Oil fell towards $53 a barrel on Wednesday, under pressure from rising output in major oil cartel Opec and non-Opec producers, and due to concerns about an economic slowdown that could weaken demand. Russian production hit a post-Soviet record in 2018, figures showed on Wednesday. Other data showed that US output reached a record in October and that Iraq boosted oil exports in December. Brent crude was 33c lower at $53.47 a barrel at 12.14pm GMT. On December 26, it hit $49.93, the lowest since July 2017. US crude slipped 40c to $45.01. “The omens are far from encouraging,” said Stephen Brennock of oil broker PVM, citing rising non-Opec supply and the likelihood of further increases in oil inventories. “The current bearish bias will therefore continue in the near term and it stands to reason that oil will struggle to break out from its current trough.” However, Nitesh Shah, director of research at WisdomTree, sees the prospect of a rebound for Brent because of an Opec-led su...
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