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Oil drops after poll points to slower global growth

Published 07/26/2019, 09:07 AM
Updated 07/26/2019, 09:10 AM
Oil drops after poll points to slower global growth
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TOKYO, July 26 (Reuters) - Oil prices fell on Friday after a
Reuters poll showed global economic growth is likely to slow
further amid the U.S.-China trade war, although losses were
limited by tensions in the Middle East.
Brent crude futures LCOc1 were down 24 cents, or 0.4%, at
$63.15 a barrel by 0049 GMT. They rose 0.3% in the previous
session.
U.S. West Texas Intermediate crude CLc1 was down 5 cents,
or 0.1%, at $55.97 a barrel, after gaining 0.25% overnight.
A global economic growth rut risks deepening, despite
expectations that major central banks will cut rates or ease
policy further, according to Reuters polls of over 500
economists who remain worried about the U.S.-China trade war.
Increasing pessimism is clear from the latest polls taken
July 1-24, which show the growth outlook for nearly 90% of over
45 economies polled was either downgraded or left unchanged.
That applied not just to this year but also 2020. While concerns over Middle East supply disrputions have led
to recent price spikes, oil has generally been under pressure
from worries about global economic growth amid growing signs of
harm from the rumbling Sino-U.S. trade war over the past year.
"Bullish wagers will be held hostage to the soggy global
growth outlook," Stephen Innes, managing partner at Vanguard
Markets, said in a note.
A week after Iran seized a British-flagged tanker in the
Gulf, Britain has sent a warship to accompany all
British-flagged vessels through the Strait of Hormuz, a change
in policy announced on Thursday after the government previously
said it did not have resources to do so. U.S. Secretary of State Mike Pompeo said in a television
interview on Thursday that he would go to Iran for talks if it
was necessary, amid the tensions between Tehran and Washington.

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