Oil prices are under pressure amid fears of a US economy slowdown, despite OPEC’s decision to leave its supply limits unchanged on Friday.
At midday Friday, the London Brent crude was quoted at $60.66, edging slightly higher after OPEC’s relievable decision.
However, falling international stock markets have a direct impact on oil prices as a US economy slowdown will result in lower energy demand. The United States is the world’s biggest oil consumer.
Former Federal Reserve chairman Alan Greenspan warned on Thursday that defaults in mortgage markets could spill over into other economic sectors.
A rising number of mortgage defaults by higher-risk borrowers in the US could affect the wider financial sector and consumer confidence, analysts reckon.
OPEC which pumps more than a third of the world’s oil, is also concerned about the implications of the equity market weakness.
“We are watching developments on the world stock markets, to assess their possible impact on the global economy and, in particular, on energy demand,” said OPEC President and United Arab Emirates’ Oil Minister Mohammed bin Dhaen al-Hamil.