SINGAPORE: Brent crude plunged more than $1 to near $78 a barrel on Monday following news that Japan, the world’s fourth-biggest crude importer, had slipped into recession and after comments from the West’s energy watchdog that a return to high oil prices was unlikely soon.
The chances of a pick-up in global oil demand were dealt a blow by the data showing Japan’s economy unexpectedly shrank by an annualised 1.6 percent in the third quarter because of weak consumption and exports.
“This is another knock on crude oil prices, another bearish factor,” said Tony Nunan, oil risk manager at Tokyo’s Mitsubishi Corp.
Brent crude fell $1.08 to $78.33 a barrel at 0724 GMT. The contract for January delivery closed $1.92 higher on Friday.
U.S. crude for December delivery was 78 cents lower at $75.04 a barrel, after settling $1.61 higher.