Concern about health of global economy rattles oil
Brent slips, but output cuts provide some support, keeping markets on track for a strong weekly climb
Singapore — Oil slipped on Friday amid concerns over the outlook for the global economy, but output cuts agreed by major exporters underpinned crude prices and kept markets on track for a strong weekly climb. International Brent crude futures were at $61.55 a barrel at 3.33am GMT, down 13c, or 0.2%, from their last close. US West Texas Intermediate (WTI) crude futures dropped 7c, or 0.1%, to $52.52 a barrel. Traders said the declines came on lingering concerns over the health of the global economy. “If we experience an economic slowdown, crude will underperform due to its correlation to growth,” said Hue Frame, portfolio manager at Frame Funds in Sydney. Most analysts have downgraded their global economic growth forecasts below 3% for 2019, with some even fearing a looming recession amid trade disputes and spiralling debt. For now, however, there is hope that the trade war between Washington and Beijing may be resolved as global markets, including oil, took heart from talks between ...
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