Oil Holds Decline as Macro Concerns Outweigh OPEC+ Supply Cuts - Yahoo Finance

Oil Holds Decline as Macro Concerns Outweigh OPEC+ Supply Cuts

(Bloomberg) -- Oil held a drop as signs of macroeconomic weakness — especially in top importer China — eclipsed OPEC+’s widely expected extension of output cuts.

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West Texas Intermediate traded below $79 a barrel after slipping 1.5% on Monday, the biggest loss in more than a week. Global benchmark Brent crude closed under $83. Wider markets remained subdued ahead of the release of US jobs data and remarks from Federal Reserve officials, with a dour outlook for China also clouding the outlook.

Crude has been on a slow-motion ascent that has seen Brent gain around 7% this year, bolstered by tensions in the Middle East and OPEC+’s limiting of supply. That optimism has been tempered by strong production from outside of the cartel, a shaky demand outlook in China and the paring back of expectations for when central banks will start monetary easing.

OPEC and its allies on Sunday extended their roughly 2 million-barrel-a-day reduction through the end of June, in a move that had been widely anticipated. The cutbacks will be gradually unwound subject to market conditions after that, OPEC’s Secretariat said.

In the Middle East, meanwhile, tensions continued simmering. Negotiations for a pause in the fighting in the Israel-Hamas war remain bogged down, while another container vessel — the MSC Sky II — was attacked in the Red Sea by Yemen-based Houthi rebels.

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