Emerging markets continue to badly affect oil prices
Major emerging markets, which have provided much of the growth in oil consumption in the past two decades, are beset by economic problems
London — Consumption concerns have kept oil prices under pressure since the middle of April, even as threats to production and seaborne exports multiply. US sanctions have slashed exports from Venezuela and Iran, Libya's production is threatened by renewed fighting, and tension between Iran and the US have ratcheted up. But the consumption outlook is deteriorating, with global trade hit by the US-China dispute and growth prospects in major emerging markets from Brazil to India and Turkey downgraded. Global manufacturing production is decelerating, new export orders are falling, air freight volumes are declining and container throughput is down, the most recent monthly indicators for March and April show. Policy makers insist the economy is in robust health, but financial markets are pricing in a quarter-point cut in US interest rates before the end of 2019, anticipating the Fed will take out insurance against a deeper slowdown. Problems are especially acute in emerging markets, wher...
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