Oil suffers deep weekly loss as concerns over demand intensify

Oil suffers deep weekly loss as concerns over demand intensify

Oil headed for a punishing weekly loss on increasing evidence that a global economic slowdown is spurring demand destruction, with prices collapsing to the lowest level in six months as key time spreads contract.

West Texas Intermediate traded above $89 a barrel in Asia, with the US benchmark down more than 9% this week. Official data showed US gasoline consumption has softened while crude stockpiles rose. The slump came even as Saudi Arabia has boosted prices, and OPEC+ warned of scant spare capacity.

While oil markets remain in backwardation, a bullish pricing pattern, widely watched differentials have narrowed sharply, signaling an easing of tightness. Brent’s prompt spread — the gap between its two nearest contracts — was $1.62 a barrel in backwardation, down from more than $6 a week ago.