Oil values slump on sombre economic outlook

<p>Oil values have slumped as confidence in global economic growth wanes.</p>

Brent Crude Oil values have slumped in commodities trading today (September 24th), as concerns of weak economic growth indicate demand for the fuel may be on the slide.

Fresh efforts to spur growth from central banks in the US, Japan and Europe have not done enough to combat the gloomy outlook, because when economic growth slows, so does demand for oil.

A stronger dollar has made crude more expensive and less attractive to investors, after the black stuff rallied on news the US Federal Reserve is planning to implement a fresh round of open-ended quantitative easing – which served to buoy the dollar-denominated commodity.

But news the German Ifo index of business confidence is down for the fifth consecutive month and World Trade Organization estimates have cut global trade growth for this year and next have dampened investor confidence.

At 16:40 BST, Brent Crude Oil Futures were lower by 1.8 per cent to $109.42 per barrel, while West Texas Intermediate Crude Oil Futures retreated 1.6 per cent to $91.61 per barrel.

Find the latest spread betting strategies for the commodities market at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.