Economics
Oil Suffers Worst Week in Almost 3 Years Amid Broader Malaise
- U.S. rate hike, doubts over OPEC+ output curbs weigh
- WTI poised for the biggest quarterly decline since 2014
Photographer: Vivek Prakash/Bloomberg
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Oil capped its biggest weekly decline since 2016 on concerns that weakening economic growth and surging U.S. supply will lead to a surplus next year, overwhelming OPEC’s efforts to stabilize the market.
Futures sank 11 percent this week in New York, the most since January 2016. Crude joined a sell-off in wider financial markets after an interest rate increase by the Federal Reserve and the threat of a U.S. government shutdown added to economic uncertainty. Meanwhile, investors remain skeptical that cuts agreed by OPEC and its allies are sufficient to avert a looming oil glut.