West Texas Intermediate and Brent crude oils fell more than 1% Friday, slipping further from 2019 highs reached earlier last week.
The reasons for the slippage included a lack of progress in U.S.-China trade talks and grim manufacturing data from Germany and the U.S., which brought back fears of a global economic slowdown and thus less need for oil.
Wall Street’s main indexes fell more than 1% Friday after manufacturers in Europe, Japan and the U.S. were hurt in March as surveys showed trade tensions had impacted factory output.
U.S. WTI futures Friday settled down 1.6%, at $59.04 per barrel, Kallanish Energy reports. WTI marked a 2019 peak last Thursday at $60.39/Bbl and was roughly flat for last week.
Brent crude oil futures Friday were at $66.96/Bbl, down 1.3%. The contract hit a four-month high of $68.69/Bbl Thursday. The global benchmark has risen by more than 20% since Jan. 1, due to supply cuts by Opec+, which includes most Opec members and allies such as Russia, along with U.S. sanctions on Iran and Venezuela.
As economic growth has slowed across Asia, Europe and North America, potentially lowering fuel consumption, no breakthrough have been reported in trade talks between Washington and Beijing, at least before meetings scheduled for later this week.
A jump of more than 2 million barrels per day in U.S. crude oil production since early 2018 to a record 12.1 million barrels per day (Mmbpd) has made the U.S. the world’s biggest producer, ahead of Russia and Saudi Arabia.
This has resulted in increasing exports, which have doubled over the past year to more than 3 Mmbpd.
This post appeared first on Kallanish Energy News.