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Oil hits 2018 lows on emerging supply glut

Global oil
Oil prices slumped to 2018 lows on Friday in thin but volatile trading, pulled down by concerns of an emerging global supply overhang amid a bleak economic outlook. FILE PHOTO | NMG 

Singapore

Oil prices slumped to 2018 lows on Friday in thin but volatile trading, pulled down by concerns of an emerging global supply overhang amid a bleak economic outlook.

Even an expectation that the Organisation of the Petroleum Exporting Countries (OPEC) producer group will start withholding supply in 2019 to rein in any glut provided little support, traders said.

International benchmark Brent crude oil futures LCOc1 hit their lowest since December 2017 at $61.52 per barrel, before recovering to $62.10 by 0430 GMT.

That was still 50 cents, or 0.8 percent below their last close.

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US West Texas Intermediate (WTI) crude futures CLc1 slumped by more than 2 percent, to $53.35 a barrel, after coming within 5 cents of an October 2017 low reached earlier in the week.

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