SINGAPORE (Reuters) – Monday's oil prices fell on a sharp economic downturn outweighing supply disruptions from OPEC's production cuts and US sanctions against Iran and Venezuela.
FILE PHOTO: FILE PHOTO: An oil pump jackpump oil in a field near Calgary, Alberta, Canada on July 21
Brent crude futures were at $ 66.52 per. 0102 GMT barrel, down 51 cents, or 0.8 percent, from their last seal.
U.S. West Texas Intermediate (WTI) futures were $ 58.42 per. Barrel, down 63 cents, or 1.1 percent, from their final settlement.
Both crude oil benchmarks have fallen by more than 3 percent since last week hit their highest since November 2018.
Concerns about a potential US recession revived late last week following bearish comments from the US Federal Reserve sent 10-year Treasury dividends to lowest since early 2018.
In response, 10-year yields dropped during the three-month rate for the first time since 2007. Historically, a reverse yield curve – with long-term rates falling below short-term interest rates. term – has signaled an upcoming recession.
Adding to the fear of a more widespread global downturn, production production data from Germany, Europe's largest economy, shrank for the third straight month.
"Estimates of growth and earnings have changed significantly across all major regions," said US bank Morgan Stanley.
The ANZ bank said that the darker economic outlook "overshadowed the supply issue" The oil market faced supply cuts led by the OPEC producer club as well as US sanctions against Venezuela and Iran.
The oil oil exporting organization (OPEC) and non-affiliated allies such as Russia, collectively named & quot; OPEC + & quot ;, are committed to withholding around 1.2 million. Barrels per Day (bpd) of oil supply in year up markets, with OPEC's de facto leader looking to push at a raw price of over $ 70 a day. barrel.
GRAPHIC: Russia, Saudi and the rest of OPEC crude oil production: tmsnrtrsrsCHCH9lJ
Reporting of Henning Gloystein; Editing Joseph Radford