Oil extends losses as economic data, growing inventories drag

By Roslan Khasawneh
SINGAPORE, Oct 3 (Reuters) - Oil futures extended losses on
Thursday as weak economic data weighed on the outlook for fuel
demand which was made worse by a larger than expected rise in
U.S. crude inventories.
"Crude oil prices fell as rising inventories added to the
weakening economic backdrop," said ANZ Bank in a note on
Thursday.
Brent crude oil futures LCOc1 fell 17 cents, or 0.3%, to
$57.52 a barrel by 0052 GMT, after tumbling 2% in the previous
session.
U.S. West Texas Intermediate (WTI) crude CLc futures fell
9 cents, or 0.2%, to $52.55 a barrel, after sinking by 1.8% on
Wednesday.
"What's impossible to ignore is the economic realities being
signalled in the latest run of doom and gloom financial market
data which offers few if any reason for oil investors to be
optimistic over the outlook for global demand," said Stephen
Innes, market strategist, SPI Asset Management.
World equity benchmarks hit their lowest levels in a month
on Wednesday as signs of a slowdown in U.S. economic growth and
weak earnings in Europe fanned fears that the U.S.-China trade
war could push the global economy into a recession. "While the near-term triggers may continue to relate to oil
demand, next week U.S.-China trade talks remain the unknown
variable which could lend a modicum of support," said Innes.
U.S. crude inventories rose 3.1 million barrels last week,
the Energy Information Administration said on Wednesday, far
exceeding analyst expectations for an increase of 1.6 million
barrels. EIA/S
WTI futures are on track for eight straight sessions of
declines, their longest losing streak since November 2018.
Brent futures are now below levels seen before the Sept. 14
attacks on Saudi Arabia oil facilities that briefly halved more
than half the kingdom's output. "The market is clearly fixated on the potential impact of
weak economic growth on oil demand, with supply side issues
taking a back seat for the moment," said ANZ.