Global slowdown worries keep oil prices under pressure

By Ovunc Kutlu

ANKARA (AA) - Brent crude oil was trading around $60 per barrel on Friday as rising worries over a global economic slowdown threaten to reduce oil demand around the world.

The international benchmark was at $60.86 a barrel at 1230GMT, a 0.4 percent loss, closing the previous session at $61.09 per barrel. The benchmark posted a 3 percent decline this week after it opened Monday at $62.74 a barrel.

American benchmark West Texas Intermediate (WTI) was trading at $53.05 a barrel at the same time on Friday for a 0.2 percent loss, ending the previous day at $53.13 per barrel. WTI saw a 1.1 percent loss this week, after beginning to trade at $53.66 on Monday.

Most of the decline in both benchmarks came on Tuesday, when Brent crude fell 2 percent for the day and WTI posted a loss of 3.1 percent.

-Slowdown feared

China announced late Sunday that its economy grew by 6.6 percent in 2018 -- its lowest pace in 28 years.

The slowest growth rate since 1990 for the world's second-biggest economy raised worries that the global economy could slow down in 2019 from last year.

The International Monetary Fund added to worries on Monday when it revised down its forecast for global growth.

The IMF said it now estimates global economy to grow 3.5 percent in 2019 and 3.6 percent in 2020 -- 0.2 and 0.1 percentage points below, respectively, its previous forecasts in October.

A global economic slowdown would have a negative impact on oil demand around the world and push crude prices lower this year, according to experts.

Rising crude output in the world's top three producing countries -- the U.S., Russia, and Saudi Arabia -- would also add to the glut of supply in the global market and keep downward pressure on prices, they added.

U.S. crude oil production remained near a record high level of 11.9 million barrels per day for the week ending Jan. 18, EIA data showed on Thursday.

Crude oil production in the U.S. is expected to average 12.1 million bpd in 2019 and 12.9 million bpd in 2020, according to the EIA's Short-Term Energy Outlook report for January.