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Oil slips as banks, finance ministers signal economic challenges

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Crude has rallied around 40 per cent this year as the Organization of Petroleum Exporting Countries (OPEC) and its allies restrict supplies and Iran, Venezuela and Libya face unplanned disruptions.

Tuesday 16, April 2019

(Bloomberg) --Oil slipped in New York after its longest run of weekly gains in three years, as disappointing bank earnings revived uncertainty about the strength of the economy.

Futures slid as much as 1.4 per cent in New York earlier this week after notching a sixth straight weekly increase. US equities halted a three-day climb after results from Goldman Sachs Group and Citigroup failed to meet expectations.

That followed a weekend statement from global finance ministers and central bankers that economic risks are tilted to the downside.

Yet the demand picture also remains shaky, with the International Energy Agency warning last week it could cut its growth projections.

Brent for June settlement declined 56 cents, or 0.8 per cent, to $71 a barrel on the London-based ICE Futures Europe exchange. The contract added 1.7 per cent last week.

Pressuring prices further was a Baker Hughes report that US working oil rigs rose by two to 833 last week. While the number of drilling rigs has dropped from its recent peak of 888 in November, US production has continued to reach new highs, with the latest government data showing it’s at a record 12.2 million barrels a day.

 

TAGS : Oil, Goldman Sachs Group, Citigroup

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