01 November 2018, News Wires — Oil fell on Thursday, touching its lowest levels since June, due to rising concerns over weaker global demand and increased supply from the world’s major oil producers.
Brent and U.S. futures have dropped on growing concern over a possible slowdown in global growth as the U.S-China trade dispute remains unresolved, and is starting to hit emerging market economies in particular.
That will offset the decline in Iranian exports that could tighten supply. China’s imports from Iran fell by 34 percent in September from the year-ago period, official Chinese customs data showed.
U.S. sanctions on Iran’s energy exports come into force on Nov. 4 and it is still unclear how much the country’s roughly 3.8 mln bpd production will affected.
China’s manufacturing sector in October expanded at its weakest pace in over two years, hurt by slowing domestic and external demand, in a sign of deepening cracks in the economy from the trade war with the United States.
“Oil investors are now betting on the potential of a global slowdown,” said Bruce Xue, an analyst with Huatai Great Wall Capital Management.
The U.S. Energy Information Administration on Wednesday reported a sixth straight week of builds in U.S. crude inventories.