Oil Prices Fall as Global Demand Concerns Grow

Oil fell on Monday as concerns about economic growth combined with signs of ample global supplies pressured prices, outweighing bullish signals from Europe, where fears of an economically damaging no-deal Brexit have eased.

Global benchmark Brent crude was down 57 cents at $58.85 a barrel. US West Texas Intermediate crude oil declined 39 cents to $53.39 a barrel, Reuters reported.

US and Chinese trade negotiators are working on nailing down a Phase 1 trade deal text for their presidents to sign next month, hoping to resolve a trade war that has rumbled on over the last year, slowing global economic growth.

But adding to tensions, China is now seeking $2.4 billion in retaliatory sanctions against the United States for non-compliance with a WTO ruling in a tariffs case dating back to the Obama era, a published document showed.

The Organization of the Petroleum Exporting Countries, Russia and other oil producers, an alliance known as OPEC+, agreed in December to cut supply by 1.2 million barrels per day from the start of this year.

Russia, the world’s second-largest oil producer, said on Sunday it did not meet its supply reduction commitment in September because of an increase in natural gas condensate output as the country prepared for winter.

Additionally, talks between OPEC members Kuwait and Saudi Arabia to resume oil production from joint fields in the Neutral Zone between the two countries, with capacity of 500,000 barrels per day, could mean more supply returning to the market.

source: Financial Tribune