NEW YORK (Reuters) – Oil prices fell on Thursday after rebounding 8 percent in the previous session, with prices pressured by concerns over a faltering global economy and worries about a glut in crude supply.
FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson
Brent crude LCOc1 futures dropped 80 cents, or 1.5 percent, to $53.67 a barrel, by 10:47 a.m. EST (1547 GMT). U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 58 cents to $45.64 a barrel, a 1.3 percent loss.
Prices surged on Wednesday, tracking heavily with a spike in the U.S. equities market after President Donald Trump’s administration attempted to shore up investor confidence. [MKTS/GLOB]
However, U.S. stocks retreated on Thursday, dragging oil prices down with them. [.N]
“In the absence of major oil specific headlines, the petroleum complex has become ‘attached to the hip’ of the equities amidst this week’s extreme price moves that have been developing in both directions,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Both Brent and WTI have lost more than a third of their value since the beginning of October and are heading for losses of around 20 percent in 2018.
Concerns about slowing global economic growth have dampened investor sentiment in riskier asset classes and pressured crude futures.
Market participants have grown worried about an oversupply of crude. Three months ago it looked as if the global oil market would be