Oil headed for a modest weekly loss as the prospect for further interest-rate hikes from the Federal Reserve and rising US stockpiles continued to weigh on the market, despite China’s reopening.
(Bloomberg) — Oil headed for a modest weekly loss as the prospect for further interest-rate hikes from the Federal Reserve and rising US stockpiles continued to weigh on the market, despite China’s reopening.
West Texas Intermediate futures edged higher toward $76 a barrel in Asia but are down 1% this week. Investors will be watching personal spending data later Friday, which will likely help shape the debate over monetary policy. Minutes from the central bank earlier this week signaled more rate hikes to come.
Oil has been whipsawed this year by bullish optimism around China’s rebound following the end of Covid Zero and persistent concerns over a US economic slowdown. Wall Street banks are starting to temper their outlook for crude prices, with UBS Group AG and Morgan Stanley the latest to trim forecasts.
US crude stockpiles rose by 7.65 million barrels last week to the highest level since May 2021, according to government data. Distillate inventories, a category that includes diesel, also expanded.
Other news:
- Sanctioned Russian Oil Is Being Switched at Sea Near Greece
- Pioneer CEO Expects Oil to Hit to $100 on US Supply Slowdown
- Europe Draws More Angolan Crude as Russia Ban Redirects Flows
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