Oil Climbs From Three-Month Low as China’s Recovery Strengthens
(Bloomberg) -- Oil rose from its lowest close in three months as traders took stock of the outlook for demand amid turmoil in the US banking sector.
West Texas Intermediate futures climbed toward $72 a barrel after losing 7% over the past two sessions. China’s economic activity showed further signs of strengthening during the first two months of the year, including a boost in oil refining, though the rebound remains unbalanced.
The market is still facing another interest-rate hike from the Federal Reserve next week after US inflation gained, despite the collapse of Silicon Valley Bank leading to turmoil across the banking sector.
“Oil investors should price in volatility for now until further clarity on the Fed policy decision,” said Priyanka Sachdeva, an analyst at brokerage Phillip Nova Pte Ltd. The steep drop seems like an overreaction to the SVB crisis, she said.
Oil has endured a bumpy year, whipsawed by aggressive monetary tightening from the Fed and optimism around China’s demand recovery. Further gains may be constrained in the near term, with OPEC forecasting a modest surplus in the second quarter, a typical period of soft demand prior to the summer.
The price cap imposed on Russian crude is working, even with three-fourths of such sales occurring outside the mechanism, a senior US official said. In India — which is ensuring it won’t breach the limit — opaque purchases of grades like Urals and ESPO mean it’s hard to be sure if imports are bought below it.
The International Energy Agency is scheduled to release its monthly market report later Wednesday, providing the market with a snapshot on the demand and supply outlook. US inventory data is also expected.
More stories like this are available on bloomberg.com
©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

Exxon Boosts Share Buybacks as Hunt for More Oil Accelerates
Dec 06, 2023
Oil Steadies After Three-Day Loss as Riyadh Defends OPEC+ Cuts
Dec 05, 2023
Chevron, Exxon Opt Out of Funding COP28 Methane-Cutting Fund
Dec 04, 2023
COP28 Latest: Bankers Start Talks With All Options on the Table
Dec 04, 2023
Russian Gas Glut Shows Austria Still in Kremlin’s Energy Orbit
Dec 04, 2023
Japan Vows to End Construction of New Unabated Coal Plants
Dec 02, 2023
Oil Extends Losses Amid Pessimism Over Swelling Global Supplies
Dec 01, 2023
Asia Shares Drop After November Jump, Dollar Falls: Markets Wrap
Dec 01, 2023
Occidental Petroleum in Talks to Buy CrownRock, WSJ Reports
Nov 30, 2023
Saudis Forecast to Cut Oil Price to Asia as Competition Heats Up
Nov 29, 2023
Nuclear energy to play a key role in the energy transition
Dec 08, 2023
Renewable energy is accelerating, but not fast enough
Dec 07, 2023
COP28 to drive investment in the energy transition
Dec 06, 2023
Technologies that can be super charged to meet climate goals
Dec 06, 2023
COP28 presents a strong opportunity for Nabors
Dec 05, 2023
Low carbon hydrogen holds the key to achieving net zero
Sep 29, 2023
The trillion-dollar opportunities on the road to net zero
Aug 16, 2023
Unlocking growth opportunities in sustainable finance
Jul 12, 2023
Decoding the trends shaping the future of energy
Jun 14, 2023
Exploring ESG’s critical role in the journey to net zero
May 18, 2023Partner content

IT/OT convergence: balancing agility and reliability

Technologies that can help the oil and gas industry decarbonise

World-class energy management systems can shape a sustainable future

Automation is the key to LNG present and the future scenario for hydrogen
