Wednesday, 26 January 2022

Oil eases from four-month high on global growth worries

SYDNEY: Oil prices edged lower on Thursday, retreating from a four-month peak, as fears of a slowing global economy weighed on market sentiment.

US West Texas Intermediate (WTI) crude futures were at $60.16 per barrel at 0040 GMT, down 7 cents, or 0.1 percent, from their last settlement. WTI had earlier hit a high of $60.19 a barrel – the highest since Nov. 12.

International Brent crude oil futures were at $68.47 a barrel, down 3 cents from their last close. Brent touched $68.57 a barrel on Wednesday, its highest since Nov. 13.

The losses came amid worries over global economic growth after the U.S. Federal Reserve highlighted signs of a slowing economy.

Markets have been underpinned, however, by efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to curb supply, and losses were checked as widely watched US data showed supplies were tightening.

“Oil markets appear convinced that the continued effects of the Saudi Arabia oil production cuts and falling exports to the U.S. will continue to outweigh the concerns of rising U.S. production,” said Alfonso Esparza, senior market analyst at brokerage, OANDA.

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