WTI crude is now down nearly 4% on the day as gloom about the global economy sets in.

The big news this week was OPEC but they did as much as could have been reasonably expected by extending cuts for 9 months. This may be a sell-the-fact trade but it looks more like the market is jittery about demand.

The US Treasury market is sending the same worrisome signals today, despite the China-US truce.

One worry is that Trump’s administration announced fresh European tariffs yesterday. The amount of goods overall is small but it’s moving in the wrong direction and a US-Europe trade war would sink growth expectations once again.

The chart doesn’t look great as we top out well-ahead of the previous highs.