Oil futures fell Thursday, taking a cue from a decline in global equities, after holding their own a day earlier following a decision by the Organization of the Petroleum Exporting Countries and its allies to begin trimming production cuts next month.
“With the OPEC+ decision behind us, oil futures are continuing to trade with a high degree of correlation to the equity markets as the biggest threat to risk assets here, including oil, is another wave of economic shutdowns due to the latest resurgence in the COVID-19 outbreak,” said Tyler Richey, co-editor at Sevens Report Research. “Case in point, oil rallied on the positive vaccine headlines earlier this week but pulled back with global stocks after disappointing retail sales data from China overnight.”
