SINGAPORE (Reuters) – The price of oil stabilized on Monday after plummeting nearly 8 percent in the previous session. However, the price of Brent crude fell below $ 60 a barrel.

FILE PHOTO: Oil spills out of a spout from Edwin Drake's original 1859 well, which was started by the modern oil industry at the Drake Well Museum and Park in Titusville, Pennsylvania (USA) on October 5, 2017. REUTERS / Brendan McDermid / File Photo

Brent crude oil LCOc1 was $ 59.23 / barrel at 0202 GMT in the previous month, an increase of 43 cents or 0.7 percent from the last close.

US West Texas Intermediate (WTI) crude oil futures CLc1 rose 11 cents, or 0.2 percent, to $ 50.53 a barrel.

The gains could not make up for the sell-off on Friday, which traders already called "Black Friday".

In response to Brent's and WTI's declines on Friday, Shanghai's commodities futures on Monday, ISCcv1, fell 5 percent, reaching their daily downside limit.

Greg McKenna, an independent financial analyst based in Australia, said there had been a "total capitulation on the crude oil markets".

The downward pressure is due to rising supply and a slowdown in demand growth, which is expected to lead to oil overhang in 2019.

(GRAPHICS: Global Crude Oil Supply and Demand Review – tmsnrt.rs/2PKtzIy)

WIDER DOWNTURN

The oil markets are also affected by a slowdown in the financial markets.

"2018 clearly marked the end of the 10-year Asian credit bull market due to deteriorating financial conditions in Asia (notably China) and we expect it to remain so in 2019," Morgan Stanley said in a note released on Sunday.

"We still do not believe at the end of the cycle," said the US bank.

The oil markets have also been hit by a strong US Dollar .DXY, which has risen this year against most other currencies, thanks to rising interest rates that have pulled investors' money from other currencies riskier than the greenback.

"Anything that is against the USD is currently under pressure, McKenna said.

Another risk to global trade and economic growth is the trade war between the world's two largest economies, the US and China.

"The trade dispute between the US and China carries a downside risk, as we forecast that by the first quarter of 2019, the US will impose 25 percent on all imports from China," said JP Morgan in a note released Friday ,

Reporting by Henning Gloystein; Cut by Joseph Radford and Richard Pullin

Our standards:The Thomson Reuters Trust Principles.

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