OPEC’s Output Cuts Haven’t Fixed the Oil-Price Slump. The Problem Is Demand.

Oil prices have given back almost all of the gains they made after OPEC and its allies surprised the market by agreeing to cut production by 1.2 million barrels a day starting in May. It’s a sign that the oil market is more focused on demand now, and doesn’t see enough evidence that countries are using more oil.

Weak demand is also weighing on oil stocks, which have had a mediocre month despite OPEC’s actions. The

SPDR S&P Oil & Gas Exploration & Production

ETF (ticker: XOP) is trading flat since before the announcement, and is down 0.8% so far this year even as the

S&P 500

has risen 8%.