It was a day of muted swing in the oil market that finally saw prices close lower as traders weighed US interest rates and the outlook for China to determine the direction of demand global energy
Brent fell as signs of a US economic slowdown dominated broader market sentiment, with traders fleeing risk assets. The pace of previously owned home purchases fell to the weakest level since 2010.
Crude oil has traded in a tight band for much of 2023, with conflicting data points preventing the market from breaking past current resistance levels. The rise in crude oil prices has been limited by the threat of a recession in the US, while the downside has been protected by the recovery of the Chinese economy.
“Brent continues to ping-pong between $80 and $85 as the US hard landing narrative collides with the China reopening narrative,” said Rebecca Babin, senior energy trader at CIBC Private Wealth . “We keep playing the same narratives and end up where we started.”
Prices:
- Brent for April settlement fell $1.02 to settle at $83.05 a barrel in New York
- WTI for March delivery, which expires on Tuesday, fell 18 cents to settle at $76.16 a barrel
- There was no settlement on Monday due to the US holiday and trades will be reserved on Tuesday
(with help from Immanual John Milton)
