Oil prices fall more than one percent as U.S. stock markets retreat
By Stephanie Kelly NEW YORK (Reuters) - Oil prices fell on Thursday after rebounding 8 percent in the previous session, with prices pressured by concerns over a faltering global economy and worries about a glut in crude supply.
By Stephanie Kelly
NEW YORK (Reuters) - Oil prices fell on Thursday after rebounding 8 percent in the previous session, with prices pressured by concerns over a faltering global economy and worries about a glut in crude supply.
Brent crude futures dropped 80 cents, or 1.5 percent, to $53.67 a barrel, by 10:47 a.m. EST (1547 GMT). U.S. West Texas Intermediate (WTI) crude futures fell 58 cents to $45.64 a barrel, a 1.3 percent loss.
Prices surged on Wednesday, tracking heavily with a spike in the U.S. equities market after President Donald Trump's administration attempted to shore up investor confidence.
However, U.S. stocks retreated on Thursday, dragging oil prices down with them. [.N]
"In the absence of major oil specific headlines, the petroleum complex has become 'attached to the hip' of the equities amidst this week's extreme price moves that have been developing in both directions," Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Both Brent and WTI have lost more than a third of their value since the beginning of October and are heading for losses of around 20 percent in 2018.
Concerns about slowing global economic growth have dampened investor sentiment in riskier asset classes and pressured crude futures.
Market participants have grown worried about an oversupply of crude. Three months ago it looked as if the global oil market would be undersupplied through the northern hemisphere winter as U.S. sanctions removed large volumes of Iranian crude. But other oil exporters have compensated for any shortfall, filling global inventories and depressing prices.
The Organization of the Petroleum Exporting Countries met earlier this month with other producers including Russia and agreed to reduce output by 1.2 million barrels per day (bpd), equivalent to more than 1 percent of global consumption.
But the cuts will not take effect until next month and oil production has been at or near record highs in the United States, Russia and Saudi Arabia, with the U.S. pumping 11.6 million bpd of crude, more than both Saudi Arabia and Russia.
Russian Energy Minister Alexander Novak said on Thursday that the country will cut its output by between 3 and 5 million tonnes in the first half of 2019 as part of the deal. It then will be able to restore it to 556 million tonnes (11.12 million barrels per day) for the whole 2019, on par with 2018, he added.
Although U.S. sanctions have put a cap on Iran's oil sales, Tehran has said its private exporters have "no problems" selling its oil.
U.S. crude inventory data will be released in the next few days with figures from the American Petroleum Institute on Thursday and a report from the U.S. Energy Information Administration on Friday.
A Reuters survey estimated that U.S. crude inventories dropped 2.7 million barrels in the week to Dec. 21.
(Reporting by Stephanie Kelly in New York, Christopher Johnson in London and Jane Chung in Seoul; Editing by Adrian Croft, Louise Heavens and Frances Kerry)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Uday Sampath Kumar (Reuters) - Target Corp reported a 17.2% rise in comparable sales for the holiday season on Wednesday as its online sales more than doubled, thanks to faster deliveries and higher demand for home goods, electronics and beauty products.
By Medha Singh and Devik Jain (Reuters) - The S&P 500 and the Nasdaq rose in choppy trading on Wednesday as Intel shares jumped thanks to a change in management while broader sentiment was muted after a recent run to record highs. Intel said it would replace Chief Executive Officer Bob Swan with VMware Inc CEO Pat Gelsinger next month
By Danny Ramos LA PAZ (Reuters) - The Bolivian government said on Wednesday it had signed a contract with India's Serum Institute for the supply of 5 million doses of AstraZeneca's COVID-19 vaccine. President Luis Arce said that combined with a recent deal to buy 5.2 million Sputnik V vaccine doses from Russia, Bolivia now expected to be able to inoculate all of its vaccinable population. Both vaccines require two doses to be given, meaning they would be used to inoculate a total of 5.1 million people from Bolivia's 11.51 million-strong population.