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Oil Prices Fall Amid Worries on Broadening Economic Slowdown

Published 03/25/2019, 01:09 AM
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Investing.com - Oil prices fell on Monday in Asia amid concerns of a broadening global economic slowdown which could threaten demand for crude.

U.S. Crude Oil WTI Futures fell 0.8% to $58.56 by 1:00 AM ET (05:00 GMT). International Brent Oil Futures was down 0.7% to $66.31.

Fears of a more widespread global slowdown escalated on Friday after manufacturing data from Germany showed a contraction for the third straight month. In the U.S., preliminary measures of manufacturing and services activity for March showed both sectors grew at a slower pace than in February.

The underwhelming data exacerbated worries over slowing global growth prospects and energy demand.

Investor sentiment was further hit following the appearance of an inverted yield curve - a possible signal of an upcoming recession.

The last time the spread between the 3-month Treasury bill and the 10-year note went negative was in 2006, right before the economic downturn that began in the following year.

Looking ahead, the American Petroleum Institute is set to publish its weekly update on U.S. oil supplies on Tuesday, while the Energy Information Administration (EIA) will release its weekly report on oil stockpiles the following day.

The EIA reported that U.S. crude supplies unexpectedly fell by nearly 10 million barrels last week, the most since July, thanks to strong export and refining demand.

Elsewhere, trade talks between the U.S. and China will also keep investors on their toes, as U.S. Treasury Secretary Steven Mnuchin and other members of the Trump administration head to Beijing this week for another round of trade discussions. Earlier reports suggested that the two sides are hoping to reach a trade deal by the end of April.

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