UNITED STATES, WASHINGTON (OBSERVATORY) — Oil of reference grades becomes cheaper during trading on Monday and completes the quarter in the red amid pessimistic forecasts of global economic growth.
Futures for November on Brent crude oil, which trades on Monday, on the London Stock Exchange ICE Futures fell by $ 0.98 (1.58%) to $ 60.93 per barrel by 18:45 Moscow time. The more actively traded December contract fell in price by $ 0.88 (1.44%) to $ 60.16 per barrel.
Quotations of WTI oil futures for November on the New York Mercantile Exchange (NYMEX) by the indicated time drop by $ 0.84 (1.5%) – up to $ 55.07 per barrel.
The price of Brent has fallen by about 8% since the beginning of the quarter, because fears that a trade conflict between the US and China will slow down the global economy and reduce oil demand outweigh the fears of interruptions in supplies from the Middle East.
In particular, on Monday, the Fitch rating agency downgraded its estimate of global GDP growth for 2019 and 2020 by 0.2 percentage points, to 2.6% and 2.5%, respectively. At the same time, an estimate for 2020 provides for the slowest growth since 2012.
“This is one of the rare cases since the 1930s when global growth prospects are so affected by trade issues,” said Fitch senior economist Brian Colton.
At the same time, the agency left the forecast for Brent crude oil prices at the same level ($ 65 per barrel) for the current 2019 year, because, despite the signal about the vulnerability of the oil infrastructure of Saudi Arabia, OPEC + countries will be able to regulate the supply and prevent a significant surplus of fuel on the world market .
“Obviously, traders are not particularly concerned about risk-based premiums in the oil market. Instead, market attention is returning to demand dynamics,” said Oanda analyst Craig Elram.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
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