Oil slips further below $60 on recession concerns, US supply
LONDON, Aug 15: Oil slipped further below $60 a barrel on Thursday, extending the previous session's 3per cent drop, pressured by mounting recession concerns and a surprise boost in US crude inventories.
In a sign of investor concern that the world's biggest economy could be heading for recession, weighing on oil demand, the US Treasury bond yield curve inverted on Wednesday for the first time since 2007.
Brent crude LCOc1 was down 20 cents at $59.28 a barrel by 0840 GMT, after a 3per cent slide on Wednesday. US crude CLc1 was down 11 cents to $55.12 a barrel.
"The market is becoming very anxious about global growth," said Tamas Varga of oil broker PVM.
The price of Brent is still up 10 per cent this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries and allies such as Russia. Traders say they expect top exporter Saudi Arabia to reduce output further. -Reuters