Oil catches some losses after the fall of "Black Friday"

SINGAPORE (Reuters) – Oil prices helped offset some losses after falling by nearly 8 percent in the previous session but remain under pressure as Brent crude is below $ 60 a barrel because fundamental weakness and difficulties in the financial markets.

Brent crude futures at the beginning of the month, LCOc1, rose 91 cents or 1.6% to $ 59.71 per barrel by 0520 GMT.

The US CLR1 West Texas Intermediate (WTI) crude futures futures rose 49 cents, or 1%, to $ 50.91 per barrel.

The gains did little to offset the Friday sale, which traders have already dubbed "Black Friday".

In response to Friday's falls in Brent and WTI, China's crude futures in Shanghai lost their ISCcv1 by 5% on Monday, reaching their daily decline limit.

The downward pressure comes from rising supply and slowing growth in demand, which should result in an oil supply surplus by next year.

"2019 will be a chaotic year for the oil market because issues regarding the prospect of a slowdown in the global economy and a supply surplus are expected to increase," said Monday the Fitch Solutions analysts.

Fitch said that even an expected supply cut headed by the Organization of Petroleum Exporting Countries (OPEC) following an official meeting on Dec. 6 "might not be enough to thwart bearish forces."

(GRAPHIC: World balance of supply and demand of crude oil – tmsnrt.rs/2PKtzIy)

Biggest decline

Oil markets are also affected by the slowdown in all financial markets.

"2018 has clearly marked the end of the 10-year Asian credit bull market due to tighter financial conditions in Asia (especially China), and we expect this to be the case in 2019," Morgan Stanley said in a statement. note published Sunday.

"We still do not think we are at the bottom of the cycle," the US bank said.

Oil markets also suffered from the strength of the US dollar .DXY, which leapt against most other currencies this year, due to rising interest rates that took money out of investors' hands. other currencies, as well as assets such as oil, considered riskier than the greenback.

"Everything against the USD is under pressure right now," McKenna said.

The trade war between the world's two largest economies, the United States and China, is another risk to global trade and global economic growth.

"The trade dispute between the United States and China represents a downside risk as we expect the United States to impose a 25% tariff on all imports from China by the first quarter 2019, "said US bank JP Morgan in a note released Friday.