Oil steadies after slumping last week on global demand fears

​Oil steadied after slumping almost six per cent last week as shrinking refining margins in Asia added to warning signs on the outlook for global demand.

West Texas Intermediate traded near US$78 a barrel after dropping last week by the most since the banking crisis in March. Diesel and gasoline markets in Asia are slumping, leading some refiners to consider reducing operations. Still, China's Golden Week holiday could spur increased jet fuel consumption from this weekend as travelers return to the skies.

“Concerns that the global economy is slowing down and that oil demand will consequently take a hit are at the forefront of investors' minds,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd.