Oil prices slide on concerns of sharp economic slowdown

[SINGAPORE] Oil prices kicked off the week's trading with losses as concerns of a sharp economic slowdown outweighed supply disruptions from Opec's production cutbacks and US sanctions on Iran and Venezuela.

Brent crude oil futures were at US$66.79 per barrel at 0022 GMT, down 29 cents, or 0.4 per cent, from their last close.

US West Texas Intermediate (WTI) futures were at US$58.68 per barrel, down 37 cents, or 0.6 per cent, from their last settlement.

"Inflation expectations have risen," said US bank Morgan Stanley.

"Estimates for growth and earnings have been revised down materially across all major regions."

ANZ bank said the darkening economic outlook "overshadowed the supply-side issues" the oil market was facing amid supply cuts led by producer club Opec as well as the US sanctions on Venezuela and Iran.

The Organization of the Petroleum Exporting Countries (Opec) and non-affiliated allies such as Russia, together referred to as 'Opec+', have pledged to withhold around 1.2 million barrels per day (bpd) of oil supply this year to prop up markets, with Opec's de-facto leader seen to be pushing for a crude prices of over US$70 per barrel.

REUTERS