11.2 C
New York
Wednesday, February 28, 2024

Oil set to snap 7-week winning streak on China woes, Fed rate outlook

Oil set to snap 7-week winning streak on China woes, Fed rate outlook
© Reuters. FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS/File Photo

 

LCO
+0.06%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

CL
+0.25%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

MCGBc1
+0.41%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

By Sudarshan Varadhan

SINGAPORE (Reuters) – Oil prices looked set to snap a seven-week winning streak on Friday as concerns about demand growth in China as its economy slows, and the possibility of higher for longer U.S. rates triggered losses.

Major benchmarks were little changed on Friday, with the U.S. West Texas Intermediate crude (WTI) up 10 cents, or 0.1%, at $80.49 a barrel, while Brent crude was flat at $84.12 a barrel as of 0205 GMT.

The U.S. Federal Reserve’s focus on containing inflation amid stronger-than-expected economic data was keeping a lid on oil prices.

On Thursday, the U.S. Labor Department reported the number of Americans filing new claims for jobless benefits fell in the last week, suggesting the still-tight labour market could prolong the Fed’s tightening campaign to cool the economy.

That report followed similarly upbeat economic data earlier in the week, including U.S. retail sales, which all suggested the Fed may have to stick with higher rates for longer.

Investors fret that higher borrowing costs could impede economic growth and in turn reduce overall demand, including for oil.

Adding to the concerns, a recent batch of economic data from China, the world’s second largest oil consumer, has highlighted the rapid loss in economic momentum there since the second quarter.

China’s sputtering economy has whipsawed global financial markets in the past few months, with a property crisis spooking investors amid contagion fears.

However, China made a rare draw on crude oil inventories in July, the first time in 33 months it has dipped into storage.

Data released this week also showed that {{8849|U.S. crcrude oil inventories fell by nearly 6 million barrels last week on strong exports and refining run rates. Weekly products supplied, a proxy for demand, rose to the highest since December. [EIA/S].

Source: Investing.com

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,268FansLike
12,893FollowersFollow
730FollowersFollow
- Advertisement -

Latest Articles

Popular Articles