Oil edged lower, along with broader commodities markets, as China's return from Lunar New Year holidays failed to deliver hoped-for gains.
West Texas Intermediate slid toward US$79 a barrel after topping US$81 last week. Risk-off sentiment permeated markets ahead of a Federal Reserve meeting Wednesday that's expected to result in another rate increase.
Oil has had a bumpy ride in recent months, with prices supported by the demand outlook in China but held back by concerns that the US could slip into recession. Some investors are speculating the Fed is now nearing the end of its tightening cycle. The market “focuses on Chinese demand after the holiday,” said Ole Hansen, Saxo Bank's head of commodity strategy. There's a “pivotal week ahead, with a slew of data and central bank meetings, which will continue the argument between recession and soft landing, driving energy markets.”
There are some signals from China that consumption is improving: Sinopec said gasoline sales were up 20 per cent over the Lunar New Year break, while the culture and tourism ministry said more than 300 million trips were made during the holidays. Yet Bloomberg's aggregate index of eight early indicators showed few signs of improvement in January. WTI for March delivery was down 0.5 per cent at US$79.26 a barrel at 10:22 a.m. London time, after swinging between gains and losses.
Traders are also on the lookout for any fallout from the European Union's impending ban on seaborne imports of Russian oil products. The restrictions come into force in about a week, along with price caps similar to the mechanism imposed on the nation's crude in December.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Holiday trips within China surge after COVID curbs liftedBEIJING — Lunar New Year holiday trips inside China surged 74% from last year after authorities scrapped COVID\u002D19 travel curbs, state media reported on…
Read more »
Toronto collective is ushering a new generation of queer Asian nightlifeStepping into New Ho Queen's Lunar New Year celebration was a beautiful experience. With art installations lining the Rivoli, red neon signs commem...
Read more »
P.E.I. furnace oil, diesel prices increase Jan. 28, 2023 | SaltWireNo change in gas prices
Read more »
Letter: Oil and gas companies don't need more taxpayer moneyShifting to renewable energy sources is the only way forward for Canada, this writer says.
Read more »
Alberta landowners fear repeat of orphan well crisis as renewable energy booms - Terrace StandardMany small municipalities, not oil companies were the ones left hurting last time
Read more »