"Fundamentals drive oil prices down in major slump"

Oil prices have slumped to their weakest level since late June, with front-month prices and calendar spreads retreating sharply since the end of September. Some attribute the collapse to rising interest rates and a worsening global economic outlook, while others point to the limited changes in production and consumption. The drop in prices and spreads may be attributed to a short-covering rally and a squeeze on deliverable supplies that has since unwound. The market has returned to a more neutral state, with production restraint by Saudi Arabia and its OPEC⁺ partners being offset by continued growth in non-OPEC output and a downgraded outlook for global growth.