Oil in bear market as supply rises and demand growth slows

Oil prices fell to multi-month lows on Friday as global supply increased and investors worried about the impact on fuel demand from of lower economic growth and trade disputes.

Benchmark Brent LCOc1 crude oil fell to its lowest since early April, down more than 18 percent since reaching four-year highs at the beginning of October. Brent was 30 cents a barrel lower at $70.35 by 0850 GMT, down 3.5 percent for the week and more than 15 percent this quarter.

U.S. light crude oil dropped 40 cents to $60.27, set for a fifth weekly fall, down 4.5 percent this week and more than 21 percent since early October.

“Oil prices ... are now officially in a bear market,” said William O’Loughlin, investment analyst at Rivkin Securities.

Oil peaked in October on concerns that U.S. sanctions on Iran that came into force this week would deprive the oil market of substantial volumes of crude, draining inventories and bringing shortages in some regions.

But other big oil producers, such as Saudi Arabia, Russia and shale producers in the United States, have increased output steadily, more than compensating for lost Iranian barrels.