Fundamental Comment

Oil prices slide on fears of slowdown in global demand

Oil prices slide on fears of slowdown in global demand

Oil prices fell in Monday trading session on fears of a slump in crude oil demand amid signs of global supply glut and slowdown in global economic growth.

Brent crude futures dropped 0.93 percent at $58.87 a barrel, while the lowest price recorded during the session was at $58.61.

West Texas crude was 0.71 percent down at $53.49 a barrel, after the prices opened at $53.53 a barrel.

Prices continued to fall during today's session on signs of concerns about economic growth in China, the world's largest crude importer.

Data released last week showed that China’s economic growth slowed to 6 percent year-on-year in the third quarter, the weakest in 27-1/2 years.

On the supply side, Russia, the world's second-largest oil producer, said on Sunday that it had not committed to reducing the supply agreed upon over the course of September.

The Organization of Petroleum Exporting Countries (OPEC) and Russia agreed in December to cut supply by 1.2 million barrels per day from the beginning of this year.

On the other hand, still there are some trade concerns as China is now seeking $2.4 billion in retaliatory sanctions against the United States for not complying with the World Trade Organization's ruling on the Obama-era tariff issue.

The U.S. dollar index traded lower for a fifth straight session at 96.89, the lowest level since July 22.

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