Oil Dips as Demand Signs, Strong Dollar Leave Traders ‘Cautious’
(Bloomberg) -- Oil lost ground amid signs of tepid demand, with a stronger dollar and key technical measures also putting a lid on the commodity’s recent rally.
Some Asian refiners are considering cuts to crude-processing volumes as profit margins shrink, signaling softer oil demand in the region, while weakness in the global diesel market added to the concerns. The stronger dollar and lingering inflation also weighed on prices, with broader markets waiting to hear from Federal Reserve speakers this week.
“Worries about stuttering economic growth and untamable inflation are capping efforts to push prices higher,” said Tamas Varga, an analyst at PVM Oil Associates Ltd. “Breaking above the $90 barrier on Brent will be a tall order in the very near future.”

Technicals are also providing headwinds for the commodity as the four-week rally has left crude in overbought territory, signaling a correction is possible in the short term. The US benchmark failed to break through its 200-day moving average last week and has been trading lower ever since.
“Prices need a breath from the latest four-week rally,” said Dennis Kissler, senior vice president of trading at BOK Financial Securities. Futures are mostly in overbought territory, causing traders this week to be in a “cautious mode.”
Oil has rebounded from the banking shock that rippled across markets in March and drove futures to a 15-month low. Shrinking crude stockpiles at the key US storage hub of Cushing, Oklahoma, and interruptions to supplies from Iraqi Kurdistan have added to the tightening of global markets.
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news

Stocks Slide as Tariff Angst Adds to Price Worries: Markets Wrap

China’s Oil Teapots Cut Runs to Pandemic Levels After Sanctions

China Refiners Set to Resell US Oil Cargoes After Tariff Blitz

Shell starts up new facility in UK North Sea, restoring production from the Penguins field

Oil Falls to Lowest Settlement Price of 2025 as Traders Flee

Oil Falls After Trump Delays Canada, Mexico Tariffs by a Month

Wright Confirmed to Lead Energy Agency Key to Trump’s Plans

Oil Rises as Trump Slaps Tariffs on Biggest Crude Supplier to US

UAE’s Adnoc Aims to Buy Nova Chemicals, Roll Into Deal With OMV
