London — Crude oil futures dropped in morning trading in Europe Tuesday, pressured by a weak economic forecast.
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At 1125 GMT ICE March Brent crude futures fell $1.25 from Monday's settle to $61.49/b while the NYMEX February WTI crude contract was down $1.09 from Monday's close at $52.71/b.
The IMF has revised its global growth forecast for 2019 down by 0.2 percentage points from its October projections to 3.5%, weighing on crude markets, analysts said. The IMF said a larger-than-expected slowdown in China was a major factor in the downside risk for global growth.
"For now, macroeconomic factors seem to be the driving force [in the crude fall], along with the uncertainty in equities," Global Risk Management senior oil risk manager, Michael Poulsen, said.
The weak outlook for emerging markets could limit oil demand, Poulsen said. "They have a more closely correlated link between GDP growth and oil consumption, unlike in service-based economies in the OECD."
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