Oil prices skid to 6-month low on slower US, China growth

Oil prices have slumped 8 per cent since Wednesday.
Oil prices have slumped 8 per cent since Wednesday.PHOTO: ST FILE

Oil prices have sunk to a six-month low on signs of slowing growth in the world's two biggest economies, the United States and China.

For the first time since production cuts by Organisation of Petroleum Exporting Countries were unveiled in November, Brent crude oil fell below US$47 a barrel yesterday as the cartel and other producers seemed to rule out deeper supply cuts to reduce a lingering glut.

Prices have tumbled 8 per cent since Wednesday.

After the reduction deal was struck on Nov 15 last year, prices rebounded from US$46.95 to a high of US$57.10 in January. But the gains have been mostly erased. Some bourses across Asia fell in tandem with oil prices as analysts forecast further losses amid signs that demand from the US and China may not be strong enough to mop up excess production.

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A version of this article appeared in the print edition of The Straits Times on May 06, 2017, with the headline 'Oil prices skid to 6-month low on slower US, China growth'. Print Edition | Subscribe