Brent crude fell more than 1% in a volatile session on Tuesday as lingering concerns about global economic growth outweighing supply constraints and prompting investors to take profits on the previous day’s gains.
Focus on the broader financial market is steadfast in Wednesday’s release of minutes from the US Federal Reserve’s latest meeting, after recent data raised the risk of interest rates remaining high for longer.
Global benchmark Brent crude closed at $1.02, or 1.2%, at $83.05 a barrel.
US Crude Oil (WTI) for March, which expired on Tuesday, fell 18 cents, or 0.2%, to settle at $76.16 a barrel. The second-month contract was down 19 cents, or 0.2%, to settle at $76.27.
Price movements today “appear to be more technical in nature,” said Phil Flynn, an analyst at Price Futures Group. “We seem to be fading away with the same old worries about the dollar going to strengthen and about the interest rate situation.”
A stronger dollar makes dollar-denominated oil more expensive for holders of other currencies. [USD/]
On Monday, oil prices rose more than 1% on optimism over Chinese demand, which analysts expect will rebound this year after Covid-19 restrictions were lifted.
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Source:
Reuters