Oil fell for the first time in three days as traders’ fears of further US rate hikes carried the day against evidence of a rebound in China.
Investors are worried that the latest U.S. inflation data will force the Federal Reserve to keep raising interest rates, curbing demand for crude oil as the economy slows. However, data from China shows a surge in mobility since the nation lifted its Covid containment measures. After batting back and forth, West Texas Intermediate pared losses to finish above $75.
“Crude oil markets are trading quite technically as fundamentals collide between an improving demand environment and incredibly resilient Russian supply,” said Daniel Ghali, commodities strategist at TD Securities.
Crude has traded within a tight range of $10 by 2023 as investors weigh a host of conflicting forces, including the outlook for Russian supplies, China’s reopening and the path of monetary policy . The market outlook will be in focus in the coming days as traders gather in London for International Energy Week, one of the industry’s most prominent events.
Prices:
- WTI for April delivery fell 64 cents to settle at $75.68 a barrel in New York.
- Brent for April settlement lost 71 cents to settle at $82.45 a barrel.
