Oil extends decline as concerns over global economy persist

Oil fell again after a weekly loss amid ongoing concern that a fragile economic outlook will continue to weigh on fuel demand.

Futures fell 1% in New York after dropping 1.7% last week. Policy makers in China, the world’s second-biggest oil consumer, are preparing for two key meetings with fresh evidence that economic growth will slip further from its lowest in almost three decades. Speculators have almost tripled short positions in US crude futures since mid-September as Washington and Beijing struggle to finalize a trade deal, according to data released on Friday.

Oil has declined 19% since an April peak even though markets were last month hit by the biggest-ever supply incident with the missile strike on Saudi Arabia’s Abqaiq plant, and continue to face crises from Iran to Venezuela and Iraq. Any fears over supply are being drowned out by the increasingly bleak economic outlook.