Brent oil falls be­low $70

The Hindu Business Line - - COMMODITIES -

Oil prices fell to multi-month lows on Fri­day as global sup­ply in­creased and in­vestors wor­ried about the im­pact on fuel de­mand of lower eco­nomic growth and trade dis­putes.

Bench­mark Brent crude fell be­low $70 a bar­rel for the first time since early April, down more than 18 per cent since reach­ing four-year highs at the be­gin­ning of Oc­to­ber.

Brent dropped $1.52 to a low of $69.13 be­fore re­cov­er­ing to around $69.85 by 1320 GMT, down more than 4 per cent for the week and ap­proach­ing 16 per cent this quar­ter.

US light crude fell to an eight-month low be­low $60 a bar­rel, hit­ting a trough of $59.28, down $1.39 and off more than 20 per cent since early Oc­to­ber. That puts the US con­tract of­fi­cially in “bear mar­ket” ter­ri­tory, bor­row­ing a def­i­ni­tion com­monly used in stock mar­kets.

“Oil prices are be­ing hit by the dou­ble whammy of ris­ing sup­plies and de­mand con­cerns,” In­ter­fax Eu­rope an­a­lyst Ab­hishek Ku­mar said.

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