Brent crude slips below $70/bbl on US economic slowdown fears

The front-month ICE Brent contract has declined by $0.56/bbl on the day, to trade at $69.69/bbl at 09.00 GMT.

CONCEPT: Oil barrels with a downward arrow depicting price declines. Getty Images

Upward pressure:

Brent crude’s price felt modest upward pressure after Kazakhstan’s Energy Minister Almassadam Satkaliyev reaffirmed the country’s intentions to stay within OPEC+’s designated crude oil production quotas.

Kazakhstan's OPEC+ production quota is set at about 1.47 million b/d, Reuters reports.

“In March, we [Kazakhstan] will strive to achieve the OPEC+ quota of about 1.5 million bpd [1.5 million b/d],” Reuters quoted the country’s deputy energy minister Alibek Zhamauov as saying.

Additionally, Ukraine launched a massive drone attack on Moscow earlier today, injuring several civilians and causing a brief shutdown at four airports in the Russian capital. The news has further increased supply-related concerns.

Downward pressure:

Brent’s price moved lower amid growing concerns of an economic slowdown in the US and weak demand scenario.

Escalating recession fears in the US have weighed on sentiments in the broader financial markets, dragging down US stock indexes and putting downward pressure on commodities, according to market analysts.

Over the weekend, US President Donald Trump warned of a “period of transition” in the world’s largest oil consumer’s economy, when asked about a potential recession in the country, according to a Reuters report.

“Trump’s comments triggered a wave of selling as investors started pricing in the risk of weaker growth in demand,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

By Aparupa Mazumder

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