Oil Plunges in Worst Reaction to OPEC Since 2014 on Demand Woes

  • Oil had its worst reaction to an OPEC meeting in more than four years, as a deal to extend output cuts reinforced concerns over a weak demand outlook.
  • Futures closed down 4.8% in New York, the steepest decline since May 31 and the biggest drop after an OPEC gathering since November 2014.
  • Bank of England Governor Mark Carney warned of dangers from rising protectionism around the globe, citing a “widespread slowdown” that may require a major policy response. That added to worries following weak manufacturing reports from the U.S., China and Europe.
  • The anxieties blotted out optimism despite Tuesday’s agreement by major oil exporters to extend production cuts for nine months. Divisions remained over Saudi Arabia’s push to target even deeper reductions, with Russia expressing doubts at the end of a summit in Vienna.

(Source: Bloomberg)