Oil extended this week’s decline as China’s lackluster economic recovery outweighed an optimistic US jobs report.
(Bloomberg) — Oil extended this week’s decline as China’s lackluster economic recovery outweighed an optimistic US jobs report.
West Texas Intermediate declined more than 1% to settle near $68 a barrel. Fresh data showed manufacturing activity in China fell at a faster pace than the previous month, prompting fears that a post-Covid bounce had petered out. Futures attempted a rally after US figures revealed job openings unexpectedly surged but were unable to withstand mounting disappointment with China and a stronger dollar.
“Sentiment remains extremely bearish and positioning reflects limited risk appetite in the commodity into the weekend with the OPEC+ meeting,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Most market watchers surveyed by Bloomberg expect the oil-producing coalition to keep output unchanged at this weekend’s meeting in Vienna, chiming with Goldman Sachs Group Inc.’s view.
Fundamentals don’t support a case for curbs, although a weak macroeconomic environment does, according to Standard Chartered Plc. RBC Capital Markets LLC said a “lean cut” may be agreed upon.
WTI has declined by around 15% this year as concern about China’s economic recovery and tighter monetary policy from the Federal Reserve weigh on the demand outlook. The wrangling over the US debt ceiling has added to bearish sentiment.
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