Oil prices slide on concerns of a sharp economic slowdown

Oil prices kicked off the week's trading with losses as concerns of a sharp economic slowdown outweighed supply disruptions from production cutbacks by the Organisation of the Petroleum Exporting Countries (Opec) and US sanctions on Iran and Venezuela.

Brent crude oil futures were at US$66.79 (RM271.75) per barrel at 8.22am today, down 29 cents, or 0.4 percent, from their last close.

US West Texas Intermediate (WTI) futures were at US$58.68 (RM238.74) per barrel, down 37 cents, or 0.6 percent, from their last settlement.

"Inflation expectations have risen," said US bank Morgan Stanley.

"Estimates for growth and earnings have been revised down materially across all major regions."

ANZ Bank said the darkening economic outlook "overshadowed the supply-side issues" the oil market was facing amid supply cuts led by producer club OPEC, as well as the US sanctions on Venezuela and Iran.

Open and and non-affiliated allies such as Russia, together referred to as 'Opec+', have pledged to withhold around 1.2 million barrels per day of oil supply this year to prop up markets, with Opec de facto leader Saudi Arabia seen to be pushing for a crude price of over US$70 (RM284.79) per barrel.

- Reuters