Oil drops below $ 70 when it enters a "bear market"

Oil prices fell to the lows of several months on Friday with an increase in global supply and investors worried about the impact on fuel demand of lower economic growth and trade disputes.

Brent crude oil futures for the first month fell below $ 70 a barrel for the first time since the beginning of April, down more than 18% since they reached the four-year highs at the end of the year. beginning of October.

The Brent fell 95 cents to a minimum of $ 69.70 before recovering slightly to trade around $ 69.85 by 1030 GMT, down 4% for the week and more than 15% this quarter.

US crude oil futures West Texas Intermediate (WTI) futures fell to a low of eight months below $ 60 a barrel, touching a low of $ 59.78, down 89 cents and above 20% from the beginning of October. This officially sets the US contract in the "bearish" territory, borrowing a definition commonly used in the stock markets.

"There is no slowdown in the bear train," said Stephen Brennock, an analyst at the London brokerage firm of PVM Oil. "On the contrary, the energy complex has extended a route driven by the swelling of global supplies and a weakening of demand prospects".

Oil peaked in October over concerns that US sanctions on Iran, coming into effect this week, would deprive the oil market of huge volumes of oil, depleting inventories and leading to shortages in some regions.

But other big producers, such as Saudi Arabia, Russia and the shale companies in the United States, have steadily increased production, rather than offset the loss of Iranian barrels.


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