Oil posted a weekly loss with macroeconomic headwinds dominating the market as traders await clearer signals on Chinese demand trends.
Crude oil fell $3 this week despite Friday’s gains amid fears the Federal Reserve is pivoting toward more aggressive interest rate hikes, adding to pressure from China’s subdued economic projections and a pickup in international travel. slower than expected. Bulls looking for a supply-driven rally have been disappointed by the resilience of Russian crude output.
“Risk appetite is dominant as crude oil traders avoid adding to their positions substantially with prices closing in a tight range,” said Daniel Ghali, commodities strategist at TD Securities.
The market has had a tumultuous year so far, pulled back and forth by the opposing drivers of concerns about the U.S. slowdown and China’s rebound. Most major banks expect demand to pick up in the second half of the year, with Chinese international travelers playing a key role. The possibility of such a rebound in the world’s largest consumer of the commodity appears to be increasing as a key indicator of Asian oil demand is recovering.
Prices:
- WTI for April delivery gained 96 cents to settle at $76.68 a barrel.
- Brent for May settlement rose $1.19 to settle at $82.78.
