China’s Shanghai crude (SC) futures followed the global rout, with the benchmark contract tumbling 4.00% to 519.00 yuan per barrel. The energy complex weakness continued in refined products, as low-sulfur fuel oil (LU) futures dropped over 2.00% to 3,776.00 yuan per ton.
Market analysts attributed the dramatic moves to growing recession fears, rising global inventories, and technical selling pressure. The simultaneous declines across crude benchmarks and refined products suggest traders are pricing in weaker-than-expected demand across major economies.
The energy sector’s underperformance comes despite recent OPEC+ production cuts, indicating market participants remain skeptical about the cartel’s ability to balance supply and demand fundamentals. Trading volumes surged during the selloff, with open interest expanding significantly in Asian trading hours.
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