Oil extended losses on fresh signs that global growth may weaken further, overshadowing a drop in the number of American rigs exploring for crude to the lowest level in almost a year.
Futures in New York fell as much as 1.2 percent, after losing 1.6 percent Friday. A closely watched gauge of Treasuries inverted for the first time since 2007, a signal a recession may be coming in the world’s largest economy. The number of U.S. rigs dropped for a fifth week, according to data released Friday by Baker Hughes, easing concern over surging U.S. production.
West Texas Intermediate for May delivery lost 40 cents to $58.64 a barrel on the New York Mercantile Exchange as of 7:40 a.m. in London after falling as much as 71 cents earlier. Prices declined 94 cents on Friday, paring the weekly gain to 52 cents, or 0.9 percent.
Brent for May settlement dropped 35 cents to $66.68 a barrel on the London-based ICE Futures Europe exchange. It lost more than 2 percent over the previous two sessions. The global benchmark crude was at a premium of $8.04 to WTI.
Source : Bloomberg