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Crude oil futures down more than 1% amid global growth concerns

Published 11/17/2014, 03:18 AM
Crude oil futures fall sharply as Japan enters recession
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Investing.com - Oil futures fell more than 1% during European morning trade on Monday, as concerns over the global economic outlook were amplified after data showed that Japan unexpectedly slipped into recession.

On the ICE Futures Exchange in London, Brent oil for January delivery lost $1.08, or 1.36%, to trade at $78.33 a barrel.

London-traded Brent futures fell to $76.76 a barrel on Friday, a level not seen since October 2010.

Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in January shed 90 cents, or 1.18%, to trade at $74.93 a barrel.

Nymex oil hit $73.25 a barrel on Friday, the lowest level since September 2010.

Official data showed that Japan’s gross domestic product contracted by an annualized 1.6% in the third quarter, following a 7.3% decline in the previous quarter. Economists had forecast a 2.3% increase.

Japan is the world's fourth-biggest crude importer.

Meanwhile, market players continued to weigh the likelihood that the Organization of the Petroleum Exporting Countries will cut output when it meets later this month.

London-traded Brent prices have fallen nearly 32% since June, when it climbed near $116, while WTI futures are down almost 30% from a recent peak of $107.50 in June.

Concerns over weakening global demand combined with indications that OPEC producers will not cut output have weighed on prices in recent months.

Oil ministers from Iran, Libya, Venezuela, Ecuador and Algeria have asked for action to prevent further price declines, while Saudi Arabia and Kuwait have resisted calls to lower production.

The 12-member oil cartel is scheduled to meet in Vienna on November 27 to discuss whether to adjust their production target for 2015.

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