Oil prices on shaky ground amid global financial market worries
11/12/2018 at 00:29
By Henning Gloystein
SINGAPORE, Dec 11 (Reuters) - Oil prices remained on shaky ground
on Tuesday after sliding by 3 percent the previous day, pressured by
weakness in global stock markets and doubts that planned supply cuts
led by producer club OPEC will be enough to rein in oversupply.
U.S. West Texas Intermediate (WTI) crude futures were at $51
per barrel at 0028 GMT, unchanged from their last close.
International Brent crude oil futures had yet to trade.
Crude prices dropped by 3 percent the session before amid ongoing
weakness in global stock markets and concerns that slowing oil
demand-growth could erode supply cuts announced last week by the
Organisation of the Petroleum Exporting Countries (OPEC) and some
non-OPEC producers including Russia.
Crude prices are down around a third since early October amid the
financial market slump and an emerging oil supply overhang.
"There remains a lot of uncertainty if the production cut is
thick enough to make a significant dent in global supply," said
Stephen Innes, head of trading for Asia-Pacific at futures brokerage
Oanda in Singapore.
"The general risk-off tone in global markets and the stronger
dollar ... are contributing to the selling pressure."
The OPEC-led group of oil producers last Friday announced a supply
cut of 1.2 million barrels per day (bpd) in crude oil supply from
January, measured against October 2018 output levels.
(Reporting by Henning Gloystein Editing by Joseph Radford)
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