Oil prices dive amid fears of economic slowdown

Oil prices decreased sharply during the week ending Dec. 21 amid weak world stock market and the fear of slow global economic growth.

The price of West Texas Intermediate (WTI) for February delivery decreased 11.0 percent, and Brent crude for February delivery decreased 10.7 percent.

In the previous week ending Dec. 14, WTI decreased 2.7 percent, and Brent crude decreased 2.3 percent. At the end of the week, WTI settled at 51.2 U.S. dollars a barrel, while Brent crude closed at 60.28 dollars a barrel.

On Monday, oil prices slumped as rising U.S. shale output and Cushing inventories deepened concerns over a global supply glut. WTI fell 1.32 dollars to settle at 49.88 dollars a barrel, while Brent crude was down 0.67 dollar to close at 59.61 dollars a barrel.

Moreover, oil output from seven major U.S. shale basins is projected to surge 134,000 barrels per day to 8.166 million barrels per day in January next year.

Adding to the worrying impact, oil stockpiles at Cushing, U.S. state of Oklahoma, a delivery hub for U.S. crude futures, rose over 1 million barrels between Dec. 11 and Dec. 14, exceeding investors’ expectation.

Analysts said that the increased inventories have pulled the crude into a deeper bearish market.

On Tuesday, oil prices dived as mounting anxieties over supply surplus cast a pall over investors across the board. WTI plunged 3.64 dollars to settle at 46.24 dollars a barrel, while Brent crude slumped 3.35 dollars to close at 56.26 dollars a barrel.

Oil prices plunged more than 7 percent to the lowest level since August 2017, as global supply continued piling up amid sagging demand due to signs of slowing global growth. Worsening the situation, investors’ confidence was further retreating amid broad sell-off in U.S. stock markets.

On Wednesday, oil prices recovered wiping off some of the sharp losses on Tuesday, as U.S. stockpiles fell last week and Federal Reserves announced an interest rates hike for the fourth time this year. WTI rose 0.96 dollar to settle at 47.2 dollars a barrel, while Brent crude jumped up 0.98 dollar to close at 57.24 dollars a barrel.

 

Oil prices dive amid fears of economic slowdown

Oil prices decreased sharply during the week ending Dec. 21 amid weak world stock market and the fear of slow global economic growth. The price of West Texas Intermediate (WTI) for February delivery decreased 11.0 percent, and Brent crude for February delivery decreased 10.7 percent. In the previous week ending Dec. 14, WTI decreased 2.7 percent, and Brent crude decreased 2.3 percent. At the end of the week, WTI settled at 51.2 U.S. dollars a barrel, while Brent crude closed at 60.28 dollars a barrel. On Monday, oil prices slumped as rising U.S. shale output and Cushing inventories deepened concerns over a global supply glut. WTI fell 1.32 dollars to settle at 49.88 dollars a barrel, while Brent crude was down 0.67 dollar to close at 59.61 dollars a barrel. Moreover, oil output from seven major U.S. shale basins is projected to surge 134,000 barrels per day to 8.166 million barrels per day in January next year. Adding to the worrying impact, oil stockpiles at Cushing, U.S. state of Oklahoma, a delivery hub for U.S. crude futures, rose over 1 million barrels between Dec. 11 and Dec. 14, exceeding investors expectation. Analysts said that the increased inventories have pulled the crude into a deeper bearish market. On Tuesday, oil prices dived as mounting anxieties over supply surplus cast a pall over investors across the board. WTI plunged 3.64 dollars to settle at 46.24 dollars a barrel, while Brent crude slumped 3.35 dollars to close at 56.26 dollars a barrel. Oil prices plunged more than 7 percent to the lowest level since August 2017, as global supply continued piling up amid sagging demand due to signs of slowing global growth. Worsening the situation, investors confidence was further retreating amid broad sell-off in U.S. stock markets. On Wednesday, oil prices recovered wiping off some of the sharp losses on Tuesday, as U.S. stockpiles fell last week and Federal Reserves announced an interest rates hike for the fourth time this year. WTI rose 0.96 dollar to settle at 47.2 dollars a barrel, while Brent crude jumped up 0.98 dollar to close at 57.24 dollars a barrel.