Oil extended two weeks of losses after data from China reignited concerns about a patchy recovery in the world’s biggest crude importer.
(Bloomberg) — Oil extended two weeks of losses after data from China reignited concerns about a patchy recovery in the world’s biggest crude importer.
West Texas Intermediate futures declined 0.8%, after rallying 2.7% on Friday on the back of strong US company earnings to pare a weekly fall. China’s manufacturing activity unexpectedly contracted in April, data released Sunday showed, in a sign the nation’s economy may be struggling to regain momentum even as consumers splurged at the start of the Labor Day break.
Hedge funds and money managers have turned deeply bearish on crude after prices swung sharply in April — surging to a 15-month high after the Organization of Petroleum Exporting Countries and its allies announced an output cut, before giving up those gains amid a deteriorating outlook. With China on holiday through Wednesday, the focus will likely be on whether major central banks including the Federal Reserve will continue tightening rates.
“Investors remain cautious amid mixed economic signals,” ANZ Banking Group Ltd. analysts Brian Martin and Daniel Hynes said in a note. “A hawkish tone from the Fed could put pressure on energy and metals.”
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.