Oil fell in a session on low volume, unable to withstand a rally in the US dollar as investors waited for the next supply curbs to hit the market.
Traders pulled out of risk assets on Monday, halting a rally in which prices have risen about 20% in the past three weeks. OPEC+’s surprise decision to cut output from May rekindled bullish bets on prices, but some demand indicators are showing signs of weakness.
“We’re waiting to see what’s really happening with the economy, but it’s a slower recovery,” Ed Morse, global head of commodities research at Citigroup Inc., said in a Bloomberg Television interview. “It is a recovery of services. In any case, it will be a phenomenon at the end of the year.”
Traders this week await information on monthly outlooks from OPEC and the International Energy Agency, as well as US inflation data and Federal Reserve minutes.
Separately, Turkey wants to negotiate payments it owes Iraq before a pipeline exporting 400,000 barrels a day is reopened, according to Turkish officials familiar with the situation.
Meanwhile, Russia’s energy ministry said the country cut its oil output by about 700,000 barrels a day last month, according to a person familiar with the data. However, this figure is not consistent with indicators on March maritime exports and supplies to domestic refineries.
Prices:
- WTI for May delivery was down 96 cents at $79.74 a barrel.
- Brent for June settlement fell 94 cents to settle at $84.18 a barrel.
