Oil Drops Most Since Bank Crisis as Macro Winds Erase OPEC Gains
- Brent prompt-spread in contango for first time since January
- Oil trading on market sentiment rather than fundamentals
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Oil, whipsawed by volatile equity markets, fell the most since mid-March when a banking crisis battered the commodity, nullifying gains from a surprise production cut by OPEC+.
West Texas Intermediate swung in almost a $3 range on Wednesday, settling at the lowest level since late March, thereby erasing all of the gains that came after OPEC and its allies announced a shock production cut. The commodity mostly ignored a bullish inventory report from the Energy Information Administration and instead tracked wild equity swings.