Oil takes a hit as sombre economic outlook outweighs supply concerns
Investors are worried about a potential US recession, after bearish remarks from the Fed last week
Singapore — Oil prices dropped nearly 1% on Monday, with concerns a recession could be looming outweighing supply disruptions from Opec’s production cutbacks and US sanctions on Iran and Venezuela. Brent crude oil futures were at $66.56 a barrel at 4.10am GMT, down 47c, or 0.7% from their last close. US West Texas Intermediate futures were at $58.52 a barrel, down 52c or 0.9% from their previous settlement. Both crude oil price benchmarks have slumped by more than 3% since last week, hitting their highest since November 2018. Concern about a potential US recession resurfaced late last week after bearish remarks by the US Federal Reserve, with 10-year treasury yields slipping below the three-month rate for the first time since 2007. Historically, an inverted yield curve, where long-term rates fall below short-term, has signalled an upcoming recession. Adding to the fears of a more widespread global downturn, manufacturing output data from Germany, Europe’s biggest economy, shrunk for...
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