Oil remained lower after flirting with gains as the market digested contrasting economic outlooks from the US and China.
(Bloomberg) — Oil remained lower after flirting with gains as the market digested contrasting economic outlooks from the US and China.
West Texas Intermediate, which has so far swung inside of a $2 a range Wednesday, pared losses after data showed US job openings unexpectedly surged with demand for labor resilient even amid tighter financial conditions. However, China’s lackluster post-lockdown recovery, which weakened in May, and a stronger US dollar continued to weigh on prices.
WTI has declined by around 15% this year as concern about China’s economic recovery and tighter monetary policy from the Federal Reserve weigh on the demand outlook. The wrangling over the US debt ceiling has added to bearish sentiment.
Looking ahead to this weekend’s OPEC meeting, most market watchers surveyed by Bloomberg expect the oil-producing coalition to keep output unchanged at this weekend’s meeting in Vienna, chiming with Goldman Sachs Group Inc.’s view.
Fundamentals don’t support a case for curbs, although a weak macroeconomic environment does, according to Standard Chartered Plc. RBC Capital Markets LLC said a “lean cut” may be agreed upon.
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