Oil prices drop sharply due to deterioration in risk sentiment – Danske Bank

Oil prices dropped sharply yesterday, where Brent plunged below USD74/bbl, Danske Bank's analyst Jens Nærvig Pedersen notes.

US consumer confidence figures weigh on risk sentiment

"The drop seems to have followed a deterioration in risk sentiment that may partly owe to weaker US consumer confidence figures also released yesterday. The oil market continues to trade on a heavy note, where demand concerns amid trade war woes and weaker US key figures outweigh potential supply concerns from recent tightening of sanctions on Iran's oil export."

"The energy complex in general has been under pressure recently, where also European natural gas prices have dropped back from high levels."