Oil Set for Longest Stretch of Monthly Declines Since 2015

US oil futures headed for the longest run of monthly losses in more than eight years as global economic concerns cloud the energy demand outlook.

(Bloomberg) — US oil futures headed for the longest run of monthly losses in more than eight years as global economic concerns cloud the energy demand outlook.

Oil prices have tracked wider markets in recent sessions with traders largely avoiding large moves while they look ahead to the next US central bank decision expected in May. Recent economic data reveals that US inflation continues to accelerate, bolstering expectations the Federal Reserve will keep raising rates and heightening the chances of a demand-sapping recession.

West Texas Intermediate rose in New York Friday, but prices are still on course for a sixth-straight monthly retreat, the worst run since 2015.

Crude swung sharply in April, surging to a 15-month high after the Organization of Petroleum Exporting Countries and its allies announced an output cut. Prices then gave up those gains amid technical pressures and a deteriorating outlook. Supply from Russia has remained resilient despite Group of Seven sanctions, and China’s rebound has been slower than some anticipated.

Falling profit margins for refiners in Asia are already flashing weakness in the biggest oil-importing region, but China’s recovery is starting to take hold. Top Chinese refiner Sinopec said the nation’s rebound will boost demand growth for refined oil products by more than 10% this year.

First-quarter earnings for oil blew out expectations with industry giants Exxon Mobil Corp. and Chevron Corp raking in profits not seen since oil topped $145 a barrel in 2008, double the current price it’s hover near at $75.

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–With assistance from Sri Taylor.

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