Oil steady after sell-off but oversupply still drags

LONDON (Reuters) – Oil stabilized on Wednesday after one of its biggest falls for years, but remained under pressure from oversupply and concern that a slowing global economy would depress demand for fuel. Benchmark Brent crude oil was up 30 cents at $56.56 a barrel by 0840 GMT, after dropping 5.6 percent on Tuesday and at one point hitting a 14-month low. U.S. light crude was 20 cents higher at $46.44, after plunging 7.3 percent in the previous session when it touched its lowest since August 2017. Both benchmarks have fallen more than 30 percent since the beginning of October as crude supply from the Middle East, Russia and the United States has outstripped demand, filling oil tanks. “The market is experiencing price carnage, maximum pain and considerable downside pressure,” said Robin Bieber, analyst at London brokerage PVM Oil. “The trend is down.” Tuesday’s sell-off was encouraged by a sharp fall in world stock markets after signs that economic growth, and hence demand for energy, was slowing. There were also worries that higher U.S. interest rates could slow U.S. growth. The U.S. Federal Reserve is expected to raise interest rates on Wednesday. The central bank is due to announce its… continue reading

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