NEW YORK (Reuters) – Oil prices fell on Thursday, retreating from an 8 percent rally in the previous session as the oil market focused on signs of faltering global economic growth and record production of crude.
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 4.24 percent, or $2.31, to settle at $52.16 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.61 to settle at $44.61 a barrel, down 3.48 percent.
“The market is giving back some of its gains from yesterday that were brought along with the euphoria in the stock market,” said Andrew Lipow, president of Lipow Oil Associates in Houston.
Prices surged on Wednesday, tracking a spike on Wall Street after President Donald Trump’s administration attempted to shore up investor confidence.
U.S. stocks retreated for most of the session on Thursday, dragging oil prices, before roaring back to end in positive territory. [.N]
Brent and WTI have lost more than a third of their value since the beginning of October and are heading for declines of more than 20 percent in 2018.
Concerns about slowing global economic growth have dampened investor demand for riskier asset classes and pressured crude futures.
Market participants are also worried about a glut of crude.
U.S. crude stocks rose by 6.9 million barrels in the week ended Dec. 21 to 448.2 million, data from industry group the American Petroleum Institute