Oil fell for a fifth consecutive month, marking its second quarterly decline since the start of 2020.
Prices have fallen against a backdrop of gloomy US economic sentiment and a banking crisis that rattled broader markets. While oil bulls have pinned their hopes on a pick-up in demand from China as it ends Covid Zero policies, the recovery has been slower than some expected.
Major banks and industry watchers have issued bullish price projections for the rest of the year and crude oil posted its best week of 2023 amid Iraqi export disruptions. The next test for the current rally will be the 50-day moving average, which could present near-term resistance in the absence of a positive catalyst, said Rebecca Babin, senior energy trader at CIBC Private Wealth.
“Fundamental developments such as positive non-manufacturing PMI data in China, inventory builds in the US and financial market stability, along with very limited long positioning, have lit a fire under crude,” Babin said.
Prices:
- WTI for May delivery rose $1.30 to settle at $75.67 a barrel in New York.
- Brent for May settlement, which expires on Friday, gained 50 cents to settle at $79.77.
- The most active June contract advanced $1.29 to $79.89.
(with help from Natalia Kniazhevich)
