LONDON: Brent crude oil slid below $103 a barrel yesterday after rising $3 in the past two sessions as investors were cautious over the tepid outlook for growth in the world’s two largest oil consumers, the United States and China.
The oil price is set for its biggest weekly gain since November but is still 7 percent off levels at the start of April after a string of disappointing data stoked fears of global economic slowdown.
Adding further pressure, data showed the US economy grew less than expected in the first quarter, stoking worries about a deceleration in the second quarter.
Brent slipped 60 cents to $102.81 a barrel by 1313 GMT, after touching a low of $102.56, while US crude was down 66 cents at $92.98.
“We had a sell-off when the GDP data came out,” said Christopher Bellew, broker at Jefferies Bache. “And after a strong week, we’re seeing quite a bit of profit-taking.”
Despite oil’s gains, some analysts said the market is still in a bearish mood.
“We know what is happening in Europe but we’re uncertain about growth prospects in China and the US and that’s probably also why Brent is underperforming WTI (West Texas Intermediate),” said ANZ analyst Natalie Rampono.
Brent’s premium to US crude futures edged lower after settling at below $10 on Thursday for the first time since January 2012.
Reuters
