NowPakistan.com
Business

#Oil #prices steady after big drop on recession concerns, inventory rise

Oil prices steadied on Thursday, following sharp overnight losses as US crude inventories unexpectedly rose, fears of recession mounted and economic data out of China and Europe disappointed.

Brent crude was down 13 cents, or 0.2%, at $59.35 a barrel by 0643 GMT, after falling 3% in the last session.

US crude was up 5 cents, or 0.1%, at $55.28 a barrel, having dropped 3.3% in the previous session.

The combination of a slew of data suggesting a slowdown in global growth amid the US-China trade war and persistently high levels of oil in US storage has punctured recent optimism in crude markets, but stoked expectations that leading producers may take further steps to support prices.

“Oil prices, though supported by OPEC-led production curbs … face severe headwinds as traders swing between demand-side worries and supply curtailment policies,” said Benjamin Lu, analyst at Phillip Futures in Singapore.

The Organisation of the Petroleum Exporting Countries (OPEC) has been mostly trimming production since the start of 2017 and traders say they expect Saudi Arabia to reduce output further amid slowing global oil demand.

The US Treasury bond yield curve inverted on Wednesday for the first time since 2007, a sign of investor concern that the world’s biggest economy may fall into recession.

China reported disappointing data for July, including a surprise drop in industrial output growth to a more than 17-year low, underlining widening economic cracks as the trade war with the US intensifies.

Global economic worries, amplified by tariff conflicts and uncertainty over Brexit, are also hitting European economies. A slump in exports sent Germany’s economy into reverse in the second quarter, data showed, while the euro zone’s GDP barely grew in the second quarter of 2019.

also read..

Pakistan is looking for next $452 million tranche of IMF

News Editor

Yemeni’s Aramco attack cost Saudi $2 billion in oil production, FT says

News Editor

WB Report confirms intl. recognition of Govt’s structural reforms: Dr. Hafeez

News Editor

Dubai Land Dept agrees to share details of assets owned by Pakistanis

News Editor

Southeast Asian leaders meet under U.S.-China trade war cloud

News Editor

President praises the position of the business community in financial growth

News Editor

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More