Oil edges lower as shrinking U.S. economy inflames recessionary fears

Oil dropped with concerns over weak economic data outweighing a crude-stockpile draw that continues to signal a tight market.

West Texas Intermediate futures edged lower to settle below US$97 a barrel after a volatile session characterized by listless swings in either direction. The US economy shrank for a second consecutive quarter, while government data this week also showed that crude stockpiles dropped by the most since the end of May. Traders are weighing how an economic slowdown could impact crude demand while low liquidity continues to exacerbate price swings.

“The bullish inventory report from yesterday is fading to the background as recession concerns loom again,” said Stacey Morris, head of energy research at VettaFi.