Oil slips amid concern about slowdown in growth

Singapore — Oil prices fell on Monday as concerns over slowing economic growth weighed on markets.

Brent crude futures, which act as a benchmark for international oil prices, were at $71.59 a barrel at 4.13am GMT, down 24c, or 0.3%, from their last close.

US West Texas Intermediate (WTI) crude futures were down 24c, or 0.4%, at $65.67 a barrel.

Reuters technical commodity analyst Wang Tao said Brent and WTI would likely come under pressure soon, testing support at $70.62 a barrel and $64.83 a barrel respectively.

“Disappointing industrial data out of China along with concerns over emerging-market economies centred on Turkey weighed on commodities,” Edward Bell of Emirates NBD bank said in a note on Sunday.

In the US, US energy companies last week kept the oil rig count unchanged at 869, according to the Baker Hughes energy services firm.

“The recent softening in benchmark prices should temper the pace of growth in US exploration and production activity, and lead to slower overall output growth,” Bell said.

Outside the US, traders said US sanctions against Iran could soon impact prices.

The US government has introduced financial sanctions against Iran which, from November, will also target the country’s petroleum sector.

Iran produced about 3.65-million barrels a day of crude in July, according to a Reuters survey, making it the third-biggest producer within oil cartel Opec, behind Saudi Arabia and Iraq.

Reuters