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| Edited By: |Source: PTI |Updated: Mar 17, 2018, 04:31 AM IST
Oil prices extended losses in Asian trade today as stock markets slumped after economic data from the US and China spurred worries of a stalling economic recovery, analysts said.
New York's main contract, light sweet crude for delivery in August, shed 13 cents to $75.81 a barrel, while London's Brent North Sea crude for August was down 23 cents to $75.21.
Sentiment remained dampened by reports showing sagging American consumer confidence and weaker Chinese economic indicators that sent both contracts tumbling more than two dollars yesterday.
"Some of that news is continuing to weigh on markets," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.
"At this stage equity markets in the region remain down quite a bit so that's probably compounding the negative mood of the oil market at the moment," he told AFP.
The Conference Board, a US business research firm, on Tuesday revised the April Leading Economic Indicator for China to 0.3 from 1.7%.
The board also announced that US consumer confidence had tumbled in June after three consecutive monthly rises amid increasing US economic uncertainty and unemployment concerns.
The weaker numbers also affected US stocks with all three major indices ending lower yesterday.
The blue-chip Dow Jones Industrial Average tumbled by more than 3% before closing 268.22 points or 2.65% lower at 9,870.30.
It was the first time the Dow had closed below the psychologically sensitive 10,000 level in 20 sessions.
The tech-rich Nasdaq index shed 85.47 points (3.85%) to 2,135.18 and the broad-market S&P 500 index dropped 33.33 points (3.10%) to close at 1,041.24.
Moore said crude prices could continue to trade on the downside as markets await Thursday's manufacturing data from the US for a clearer sign of demand in the world's largest oil-consuming nation.
"The outlook remains uncertain and there is still significant potential for volatility. You certainly couldn't say that oil prices have bottomed out at the moment," he said.
