Oil Drops Below $69 as Weak Demand Data Add to Recession Worries
- Traders eye Fed meeting for possible pause in hiking campaign
- US report shows weakening environment for gasoline, jet fuel
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Oil fell for the third straight day as weak demand data from the US added to concerns that the global economy is heading toward recession.
The recent skid, which has brought West Texas Intermediate down 14% for the year, shows that a plan by OPEC and its allies to regain control of the market by cutting production starting this month isn’t yet working. Brent’s prompt spread, which reflects the price difference between July and August futures, has narrowed to a premium of 15 cents. That’s down from a premium of as high as 43 cents at the start of the week, suggesting that traders see near-term supply outstripping demand.