Oil prices stabilize after the fall of "Black Friday"

SINGAPORE (Reuters) – Oil prices stabilized on Monday after dipping by nearly 8 percent in the previous session, but remain under pressure, with Brent trading below $ 60 a barrel because of weak oil prices. fundamentals and difficulties in the financial markets.

The Brent crude futures contract at the beginning of the month, LCOc1, was $ 59.23 per barrel at 0202 GMT, up 43 cents or 0.7% from their last close.

United States West Cluster (WTI) crude oil futures were up 11 cents, or 0.2%, at $ 50.53 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.

Greg McKenna, an Australian-based independent financial analyst, said there had been a "total capitulation of the crude oil market".

The downward pressure comes from rising supply and slowing growth in demand, which should result in an oil supply surplus in 2019.

(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.