downturn

A downturn in U.S. diesel and European gasoil futures on prospects of the U.S. eventually lifting Russia sanctions has weakened one of the recent supports for crude, while concerns about oversupply remain.

Analysts suggest the market’s recent pullback is a healthy correction, not the start of a deeper downturn.

“Unlike prior crashes, driven primarily by retail speculation, this year’s downturn has occurred amid substantial institutional participation, policy developments, and global macro trends,” they said.

Thinking on a micro level, the market downturn following Nvidia’s earnings could have been driven by a fund or portfolio liquidating, Luria said, and wasn’t necessarily a reaction to Nvidia’s report itself.

Those markets, however, have been in a downturn, and the expected recovery has been shallower than what investors were expecting at the beginning of the year because of uncertainties over U.S. trade policy.