Oil extended this week’s slide as China’s economic recovery outpaced an upbeat US jobs report.
West Texas Intermediate fell more than 1% to settle near $68 a barrel. New data showed manufacturing activity in China fell at a faster pace than the previous month, prompting fears that a post-Covid rebound had faded. Futures attempted a rally after US figures revealed job openings rose unexpectedly, but could not withstand growing disappointment with China and a stronger dollar.
“Sentiment remains extremely bearish and positioning reflects limited risk appetite in the commodity over the weekend with the OPEC+ meeting,” said Rebecca Babin, senior energy trader at CIBC Private Wealth.
Most market watchers polled by Bloomberg expect the oil-producing coalition to keep output unchanged at this weekend’s meeting in Vienna, according to Goldman Sachs Group Inc.
According to Standard Chartered Plc, fundamentals do not support restrictions, although a weak macroeconomic environment does. RBC Capital Markets LLC said a “skinny cut” could be agreed.
WTI is down about 15% this year as concerns about China’s economic recovery and the Federal Reserve’s tightening of monetary policy weigh on the outlook for demand. The dispute over the US debt ceiling has added to bearish sentiment.
Prices:
- WTI for July delivery fell $1.37 to settle at $68.09 a barrel in New York.
- Brent for July settlement, which expires on Wednesday, was down 88 cents at $72.66 a barrel.
- The August contract settled at $72.60
