Oil fell, paring a weekly advance, as concerns over the banking industry simmered and the US signaled that refilling its strategic crude inventories would take longer than previously expected.
(Bloomberg) — Oil fell, paring a weekly advance, as concerns over the banking industry simmered and the US signaled that refilling its strategic crude inventories would take longer than previously expected.
West Texas Intermediate declined toward $69 a barrel after a choppy session on Thursday that ended with a drop. Still, the US benchmark has risen by more than 4% this week. Malaise continues to hang over the US banking sector, despite an assurance of support from the authorities if warranted.
US Energy Secretary Jennifer Granholm said on Thursday that it will be “difficult” to refill government oil reserves this year. The stockpile has been drawn down to the lowest level since the 1980s after the Biden administration ordered a release in the wake of the war in Ukraine.
Crude is on course for its steepest first-quarter drop since 2020, when the coronavirus pandemic eviscerated demand. The slump has been driven by a potential US recession, robust Russian flows despite Western sanctions, and strikes in France. The US Federal Reserve hiked rates again this week to contain inflation, although some investors are betting that its tightening campaign is now close to an end.
Energy Daily, Bloomberg’s daily energy and commodities newsletter, is now available. Sign up here.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.