Oil outsets 2019 with losses amid signs of economic contraction

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Oil outsets 2019 with losses amid signs of economic contraction

On the first trading day of 2019, the 2nd of January, Wednesday, oil plunged about 1 percent, while analysts had been suggesting that the pull down was imminent, as there had been growing concerns about economic slowdown and an upbeat US output.

As factory activities in China dropped in December and the industrial sectors posted a loss in over a three-year time-frame, world’s biggest oil importer, China’s economy seemed to be restrained and an immediate downfall of oil price due to declined demand from several economies, apart from China was inevitable.

Adding further stresses to the subject-matter, the US oil inventory has again been raising. In fact, the oil price appeared to be in a critical point, from where there might have only one way, downwards. While this report was being prepared, the 2nd of January, GMT.

12.00, the Brent Crude was down over 1 percent from its yearly close of 2018 and US crude was down by 0.55 percent. Quoting statistics, the US crude had been trading around $44.93 per barrel, while the Brent Crude was trading on 53.38 per barrel.

Several analysts and energy ministers seemed to be well-concerned about the oil price, as the energy minister of Saudi Arabia, the kingpin of OPEC, had been quoted saying earlier on December that there might have been another talk between the OPEC and non-OPEC nations regarding the extent of output cut to balance the market.