Oil amounts declined on Thursday amid lingering concerns over slowing global economic growth that may limit encouragement demand and after a surprise build in U.S. crude inventories.
International Brent crude oil futures were at $60.89 a barrel at 0352 GMT, down 25 cents, or 0.4 percent, from their endure settlement, having closed down 0.6 percent in the previous session.
U.S. West Texas Intermediate (WTI) crude to be to comes were at $52.40 per barrel, 22 cents lower from their last settlement.
“Crude oil came down further pressure as concerns of faltering global growth remained at the forefront in investor’s minds,” ANZ Bank said.
The prospects of future oil immediately are getting clouded by the global growth worries, analysts said.
“With the IMF downgrading 2019/20 and the continued rhetoric from Davos iterating that they expect global growth to slow down over the next two years, is providing selling force in oil,” said Hue Frame, portfolio manager at Frame Funds in Sydney.
Earlier this week, the International Monetary Resources (IMF) cut its world economic growth forecasts for 2019 and 2020, due to weakness in Europe and some emerging markets.
Meanwhile, time leaders and top executives are meeting in Davos, Switzerland, this week to discuss how to steer policy amid worries of dumbing economic growth, damaging trade wars and Brexit.
Oil market sentiment was also weakened by an increase in U.S. crude inventories after refineries cut generate, data from industry group the American Petroleum Institute showed on Wednesday.
Crude inventories rose by 6.6 million barrels in the week ruin surpassed Jan. 18 to 443.6 million, compared with analysts’ expectations for a decrease of 42,000 barrels, the API said. Refinery churn out a be exhausts fell by 152,000 barrels per day.
“Sharp production cuts by OPEC+ have kept crude oil futures supported anyhow as market reports indicate for a marked output reduction in Dec 2018,” said Benjamin Lu, analyst at Phillip Futures.
“Albeit oil prices have demonstrated for higher upside potential in the first quarter of 2019, mounting economic challenges compel continue to impede exponential gains in the longer term,” Lu added.