FX.co ★ Brent oil becomes cheaper on pessimism about the global economy

The cost of oil has shifted to a reduction in renewed concerns about a slowdown in the global economy. March futures for Brent fell to the level of $ 61.50 a barrel. The cost of futures for WTI also showed a decline to the level of $ 53 per barrel.

As it became known on the eve, the International Monetary Fund (IMF) worsened its October forecast of global economic growth in 2019 from 3.7% to 3.5%. The forecast for 2020 assumes the growth of the global economy by 3.6%.

The forecast for emerging markets was also lowered (by 0.2%, to 4.5%). In 2020, GDP growth in emerging markets will accelerate to 4.9%. Assessment of economic growth in developed countries was reduced by 0.1%, to 2%. In 2020, similar GDP growth rates were reduced to 1.7%.

Market fears of oversupply disappeared due to the efforts of OPEC + to reduce oil production. Currently, all the attention of markets is drawn to demand, in particular, how much demand will decrease in China and in the world as a whole.