Oil Wipes Out Most of OPEC-Driven Gain in Technical Correction
- WTI settled near $77, nearly erasing gains from OPEC+ cut
- Refined products in Asia showing weakness, US economy stalled
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Oil wiped out almost all of the gains stemming from OPEC+’s surprise output cut as signs of global economic slowdown compound a bearish technical correction.
Global gasoline markets are slowing at a time when they should be ramping up or even peaking, while diesel demand, an important indicator of industrial activity, is lagging in both the US and Asia. Meanwhile, a US economic report signaled the economy has stalled in recent weeks, casting a cloud over risk assets and energy demand prospects.