Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Oil prices fall more than 1 percent as U.S. stock markets retreat

Commodities Dec 27, 2018 11:13AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport
 
LCO
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-2.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LFST
-6.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Stephanie Kelly

NEW YORK (Reuters) - Oil prices fell on Thursday after rebounding 8 percent in the previous session, with prices pressured by concerns over a faltering global economy and worries about a glut in crude supply.

Brent crude (LCOc1) futures dropped 80 cents, or 1.5 percent, to $53.67 a barrel, by 10:47 a.m. EST (1547 GMT). U.S. West Texas Intermediate (WTI) crude (CLc1) futures fell 58 cents to $45.64 a barrel, a 1.3 percent loss.

Prices surged on Wednesday, tracking heavily with a spike in the U.S. equities market after President Donald Trump's administration attempted to shore up investor confidence. [MKTS/GLOB]

However, U.S. stocks retreated on Thursday, dragging oil prices down with them. (N)

"In the absence of major oil specific headlines, the petroleum complex has become 'attached to the hip' of the equities amidst this week's extreme price moves that have been developing in both directions," Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

Both Brent and WTI have lost more than a third of their value since the beginning of October and are heading for losses of around 20 percent in 2018.

Concerns about slowing global economic growth have dampened investor sentiment in riskier asset classes and pressured crude futures.

Market participants have grown worried about an oversupply of crude. Three months ago it looked as if the global oil market would be undersupplied through the northern hemisphere winter as U.S. sanctions removed large volumes of Iranian crude. But other oil exporters have compensated for any shortfall, filling global inventories and depressing prices.

The Organization of the Petroleum Exporting Countries met earlier this month with other producers including Russia and agreed to reduce output by 1.2 million barrels per day (bpd), equivalent to more than 1 percent of global consumption.

But the cuts will not take effect until next month and oil production has been at or near record highs in the United States, Russia and Saudi Arabia, with the U.S. pumping 11.6 million bpd of crude, more than both Saudi Arabia and Russia.

Russian Energy Minister Alexander Novak said on Thursday that the country will cut its output by between 3 and 5 million tonnes in the first half of 2019 as part of the deal. It then will be able to restore it to 556 million tonnes (11.12 million barrels per day) for the whole 2019, on par with 2018, he added.

Although U.S. sanctions have put a cap on Iran's oil sales, Tehran has said its private exporters have "no problems" selling its oil.

U.S. crude inventory data will be released in the next few days with figures from the American Petroleum Institute on Thursday and a report from the U.S. Energy Information Administration on Friday. [API/S]

A Reuters survey estimated that U.S. crude inventories dropped 2.7 million barrels in the week to Dec. 21. [EIA/S]

Oil prices fall more than 1 percent as U.S. stock markets retreat
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Steve Nixon
18kRocket Dec 27, 2018 7:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
These markets are controlled by the mega financial institutions. Dow up, oil up. Dow down, oil down.
Grant Herman
Grant Herman Dec 27, 2018 7:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He who has the gold, makes the rules
Pietro Rosato
Pietro Rosato Dec 27, 2018 6:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it will drop more as world economies continue to slow
Ali Alsaegh
Ali Alsaegh Dec 27, 2018 4:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so, I will buy oil
mansoor ali
mansoor ali Dec 27, 2018 1:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil positive
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email