Oil Dips Most in a Month as China Slowdown Signals Demand Drop - Bloomberg

Oil Dips Most in a Month as China Slowdown Signals Demand Drop - Bloomberg:

Crude skidded to its worst loss in a month as disappointing corporate profit forecasts stoked concern about the economy, bruising a market already anxious about booming American oil supplies.

Futures dropped 3.2 percent in New York on Monday, joining a slide in equities after microchip-maker Nvidia Corp. and heavy-equipment giant Caterpillar Inc. warned of slowing growth in China and elsewhere. Saudi Arabia’s pledge to pump oil “well below” its self-imposed limit did little to mollify traders.

Oil has advanced 15 percent this year as the Organization of Petroleum Exporting Countries and allies curbed output to ease glut concerns. Nevertheless, price gains have been capped by record American output, expanding stockpiles and the U.S.-China trade war. Talks between the world’s two biggest economies later this week may provide the catalyst for crude to break through its recent narrow trading range.