Oil fell to its lowest levels since early January as longer-term headwinds overwhelmed positive sentiment from a strong U.S. jobs report.
Brent crude, the global benchmark, fell below $80 a barrel, while West Texas Intermediate fell below $74 a barrel. Futures for both grades rose earlier in the session as record-low unemployment figures in the United States spurred optimism that demand would hold. But those gains evaporated as worries about rising US stockpiles and weaker-than-expected demand from China dominated the trade narrative.
“Commodity fundamentals are not improving or tightening much,” said Bart Melek, head of commodities strategy at TD Securities. “There’s a view that global supplies are certainly holding up against the Russian sanctions. And of course we continue to worry about China’s headwinds.”
Weekly data on market positioning published by the Commodity Futures Trading Commission will be delayed after a cyber attack at ION Trading UK left some clearing members unable to provide accurate data.
Prices:
- WTI for March delivery fell $2.49 to settle at $73.39 a barrel in New York.
- The previous price fell to $73.13, the lowest since January 5.
- Brent for April settlement fell $2.23 to settle at $79.94 a barrel.
- Futures fell to $79.72, the lowest since Jan. 11.
