Oil held its longest run of losses this year after minutes from the Federal Reserve reinforced the bank’s hawkish outlook and underscored concerns that further monetary tightening will sap energy demand.
(Bloomberg) — Oil held its longest run of losses this year after minutes from the Federal Reserve reinforced the bank’s hawkish outlook and underscored concerns that further monetary tightening will sap energy demand.
West Texas Intermediate traded near $74 a barrel after slumping around 3% on Wednesday for a sixth daily drop. The minutes of the Fed’s last meeting showed officials expect more interest-rate increases to tame inflation, although almost all supported a step down in the pace of hikes.
Persistent concerns over an economic slowdown in the US have overshadowed optimism about a robust rebound in Chinese crude demand following the end of Covid Zero. Wall Street banks are starting to temper their bullish outlook for oil prices, with Morgan Stanley the latest to trim its forecasts.
Meanwhile, the American Petroleum Institute reported US crude stockpiles rose by 9.9 million barrels last week, according to people familiar with the figures. Official government data is due later Thursday.
Other news:
- Record Russian Diesel Roams at Sea as Ban Forces Hunt for Buyers
- China Set to Receive More Russian Urals Crude in Coming Months
- CPC Oil Terminal Resumes Crude Loading at Black Sea After Storm
Elements, Bloomberg’s daily energy and commodities newsletter, is now available. Sign up here.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.