Oil edges lower as slowdown concerns eat into OPEC-driven gains
BNN Bloomberg
Oil slumped as concerns over a global slowdown and weaker demand vied with a tightening supply outlook after OPEC+ cut output.
West Texas Intermediate traded below US$90 a barrel, after falling 1.6 per cent on Monday. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said the U.S. and global economies are likely to sink into recession next year, while the International Monetary Fund and World Bank saw rising risks of a slowdown.
There was weakness across markets, with stocks falling, pressured by rising treasury yields, while the dollar climbed to its highest in a month, making commodities priced in the currency more expensive.
Oil hit the lowest level since January last month as slowdown concerns gathered force, only to rebound after the Organization of Petroleum Exporting Countries and its allies responded by reducing output. Investors are gauging the impact of higher interest rates as central banks including the Federal Reserve fight inflation, as well as disruptions caused by the war in Ukraine and the outlook for global supply heading into the northern-hemisphere winter.
