Oil pulled back after its best three-day stretch since December as headwinds from recession risks in the US and Europe moderated optimism over China’s emergence from Covid-Zero policies .
“The push-pull has been ongoing since the start of the year, leaving the commodity struggling to break out of its range,” said Rebecca Babin, senior energy trader at CIBC Private Wealth. “Positioning looks set for a long time, so data will be the driver of upside moves.”
Prices have hovered in a $10 range since early 2023 with investors uncertain about the state of the US economy and the extent of China’s rebound. Major banks have said they expect the Chinese recovery to push prices back to $100, but not until the second half of this year.
Better-than-expected flows from Russia, despite multiple energy export bans and a relatively mild winter in the northern hemisphere, are constraining prices amid an uncertain economic context in the US and Europe.
Prices
- WTI for March delivery was down 41 cents at $78.06 a barrel in New York.
- Brent for April settlement lost 59 cents to settle at $84.50 a barrel.
(with the assistance of Natalia Kniazhevich and Julia Fanzeres)
