Oil fell for the eighth month in nine months as fears of a U.S. economic slowdown continued to dampen market sentiment.
Despite the $2 monthly drop, crude supplies are showing signs of tightening as sanctions against Russia complicate purchases for the few remaining crude buyers. Poland announced it will cut purchases of Russian oil in February and March, while Indian refiners face more onerous demands from financiers wary of sanctions default.
Crude has struggled to find direction in February, trading within the smallest monthly range since July 2021. Amid pessimism about rate hikes, the back half of 2023 is expected to look much better for oil touches, given the signs of an energy recovery in China. the world’s largest crude importer and Moscow’s reduced output as Western sanctions tighten.
The WTI fast spread, the spread between the two closest contracts, narrowed by more than 15 cents this month to 13 cents, pointing to tighter supplies in the coming weeks. West Texas Intermediate rose more than 2% on Tuesday, recouping losses from the previous session.
Prices:
- WTI for April delivery rose $1.37 to settle at $77.05 a barrel in New York.
- Brent for April settlement, which expires on Tuesday, was up $1.44 at $83.89 a barrel.
- The most traded May contract rose $1.41 to $83.45 a barrel.
(with help from Natalia Kniazhevich)
