Oil Set for Weekly Drop as Growth and Glut Threats Rattle Market - Bloomberg

Oil Set for Weekly Drop as Growth and Glut Threats Rattle Market - Bloomberg:

Oil’s poised for its biggest weekly drop in a month on concerns of weakening growth and doubts over whether the OPEC+ coalition’s output curbs will counter surging U.S. supply.

Futures in New York are on course for a 9.4 percent decline this week. Crude joined a sell-off in wider financial markets after an interest rate increase by the Federal Reserve and the threat of a U.S. government shutdown added to economic uncertainty. Meanwhile, investors remain skeptical that cuts agreed by OPEC and its allies are sufficient to avert a looming oil glut.

Crude’s heading for its worst quarterly loss in four years on fears the relentless growth in American shale will undermine efforts by OPEC and its partners to balance the market. At the same time, concerns over growth persist even as Fed Chairman Jerome Powell promised to be more cautious on raising rates next year, while a closely watched speech by Chinese President Xi Jinping offered no new reforms to stimulate the world’s second-largest economy.