Oil prices drop on concern over US economy

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of the US economy.

Brent crude was down 31 cents, or 0.5 per cent, at $60.18 a barrel by 0638 GMT, while US crude was down 18 cents, or 0.3 per cent, at $55.60 a barrel. Oil prices rose around 1.5 per cent in the previous session.

Concerns about a slowdown in economic growth due to the trade war raging between the US and China, along with the potential hit to oil demand, are keeping prices in check.

Daly said on Thursday she believes the US economy has “strong” momentum, but uncertainty and a global growth slowdown are having an impact.