Oil fell for the first time in three days as trader fears of further rate hikes in the US carried the day against evidence of a rebound in China.
Investors are worried that the latest US inflation data will compel the Federal Reserve to keep raising interest rates, impeding crude demand as the economy slows. Yet, data out of China shows a boom in mobility since the nation lifted Covid-containment measures. After being batted back and forth, West Texas Intermediate pared losses to finish over $75.
“Crude oil markets are trading fairly technically as fundamentals clash between an improving demand environment and incredibly resilient Russian supply,” said Daniel Ghali, a commodity strategist at TD Securities.
Crude has traded within a tight $10 range in 2023 as investors weigh a welter of conflicting forces, including the outlook for supplies from Russia, China’s reopening and the trajectory of monetary policy. The market’s prospects will come into focus over the coming days as traders congregate in London for International Energy Week, one of the industry’s marquee events.
- WTI for April delivery fell 64 cents to settle at $75.68 a barrel in New York.
- Brent for April settlement shed 71 cents to settle at $82.45 a barrel.
Published at Mon, 27 Feb 2023 13:06:01 -0800