Oil slipped in New York after its biggest loss in three weeks as concerns lingered that a slowdown in global economic growth will erode fuel consumption.
West Texas Intermediate futures were down 0.5 percent near $59 a barrel, after losing 1.6 percent. A closely watched gauge of US Treasuries inverted for the first time since 2007, signalling a recession may be coming in the world’s largest economy. Concerns over a new crude glut abated however as drilling rigs in America fell to the lowest in
almost a year.
Crude has retreated after reaching a four-month high as disappointing global economic data and a lack of resolution to the US-China trade war dampened sentiment. The Organization of Petroleum Exporting Countries and its allies’ commitment to curb output, coupled with supply disruptions in Venezuela and Iran, is stopping prices from falling further.
“Dark clouds are looming over the global economy in ever-increasing numbers,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London. “Concerns surrounding an economic downturn reared their head last week amid a flurry of negative data.”
WTI for May delivery lost 32 cents to $58.72 a barrel on
the New York Mercantile Exch-ange, after falling as much as 71 cents earlier. Prices declined 94 cents, paring the weekly gain to 52 cents, or 0.9 percent.
Brent for May settlement dropped 30 cents to $66.73 a barrel on the London-based ICE Futures Europe exchange. It fell more than 2 percent over the previous two sessions. The global benchmark crude was at a premium of $8.01 to WTI.