Oil Steadies After Weekly Decline Driven by More Hawkish Fed

Oil steadied after a weekly loss as investors weighed hawkish signals from the Federal Reserve against rising geopolitical tensions.

(Bloomberg) — Oil steadied after a weekly loss as investors weighed hawkish signals from the Federal Reserve against rising geopolitical tensions.

West Texas Intermediate futures held near $76 a barrel in Asia after closing more than 4% lower last week as two of the Fed’s most hawkish policymakers said they may favor a return to sharper interest-rate hikes to quell inflation.

US-China tensions showed no signs of cooling over the weekend due to issues surrounding the alleged Chinese spy balloon and potential aid to Russia. North Korea fired three missiles on Monday, according to Japan’s Coast Guard, while Israel is blaming Iran for a recent attack on an oil tanker in the Persian Gulf.

Oil has had a bumpy ride so far in 2023 as the market juggles optimism around China’s reopening and persistent concerns over a global economic slowdown. The Biden administration is planning to impose new sanctions on Russia due to its war in Ukraine, which will target the energy and defense sectors.

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