Oil is poised to snap its longest losing streak since December, with investors piling back into the commodity after futures neared oversold territory Wednesday.
(Bloomberg) — Oil is poised to snap its longest losing streak since December, with investors piling back into the commodity after futures neared oversold territory Wednesday.
While the Fed’s commitment to monetary tightening has weighed on markets, a forecast for record Indian demand and the prospect of Russia curbing exports are helping to buoy oil prices. Thursday’s rally defied a spate of bearish US oil data, which showed crude supplies at the highest level since May 2021.
“Crude oil was down largely on concerns that maybe we’re seeing a slowing in the global economy,” said Brian Kessens, a portfolio manager at Tortoise. “Maybe a sell-off over the past few days is a little overdone.”
Yet crude remains rangebound, with renewed expectations of rate hikes countering longer-term optimism about Chinese consumption rising later in the year. While some still hold fast to their earlier predictions, several Wall Street banks are starting to temper their bullish outlook for oil prices, with Morgan Stanley the latest to trim its forecasts.
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–With assistance from Julia Fanzeres.
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