Oil Swings Lower With Economic Data Hinting at Weaker US Demand

Oil fell, reversing earlier gains, as economic data highlighted the toll that interest rate hikes are taking on the US economy.

(Bloomberg) — Oil fell, reversing earlier gains, as economic data highlighted the toll that interest rate hikes are taking on the US economy.

Sales of previously owned homes in the US fell for the 12th straight month and dropped more than economists expected, according to data released Tuesday. That sent crude prices down after signs of a recovering market in China pushed them up earlier in the session.

Crude has traded in a tight band for much of 2023, with conflicting data points preventing the market from breaking through current resistance levels. The upside in crude prices has been limited by the threat of a recession in the US, while the downside has been protected by the recovery of the Chinese economy.

See also: China’s Clogged Roads Show Economic Recovery Gathering Pace

Traders are awaiting Wednesday’s release of minutes from the Fed’s last meeting, as well as US personal spending data on Friday, for more clues of the path for interest rates.

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