Oil fell for a second day along with other commodities amid concerns over demand in China and expectations of rising stockpiles in the US.
(Bloomberg) — Oil fell for a second day along with other commodities amid concerns over demand in China and expectations of rising stockpiles in the US.
West Texas Intermediate futures slipped as much as 1.2% to trade just above $70 a barrel in New York. Some banks cut forecasts for China’s growth this year after weak April data, although the International Energy Agency remains upbeat that the end of Covid curbs has bolstered its demand prospects.
The industry-funded American Petroleum Institute reported nationwide crude inventories rose by 3.7 million barrels last week due to a build-up at the key hub in Cushing, Oklahoma, according to people familiar with the figures. Still, gasoline and distillate inventories fell.
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“Concerns over the health of the global economy and oil demand prospects have been front and center of the oil markets of late,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd.
Crude is down about 12% this year as China’s slower-than-expected recovery, a campaign of aggressive monetary tightening from the Federal Reserve, and more recent concerns over the US debt ceiling weigh on the outlook. Still, US retail sales rose in April, suggesting that consumer spending in the world’s biggest economy is holding up in the face of economic headwinds.
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