Oil Posts Fourth-Straight Monthly Loss as Slowdown Fears Persist

Oil fell for the eighth month out of the last nine as US economic slowdown fears continue to dampen market sentiment.

(Bloomberg) — Oil fell for the eighth month out of the last nine as US economic slowdown fears continue to dampen market sentiment.

Despite the $2 monthly decline, crude supplies are showing signs of tightening as sanctions against Russia complicate purchases for the few buyers of the crude still left. Poland announced it is winding down purchases of Russian oil in February and March, while Indian refiners face more onerous demands from financiers wary of breaching sanctions.

Crude has struggled to find direction in February, trading within the smallest monthly range since July 2021. Amid the pessimism from rate hikes, the back half of 2023 is projected to look much better for oil bulls, on signs of an energy recovery in China, the world’s largest crude importer, and reduced output from Moscow as western sanctions tighten.

The prompt spread for WTI, the difference between the two nearest contracts, narrowed by more than 15 cents this month to 13 cents, indicating tighter supplies in the weeks ahead. West Texas Intermediate climbed more than 2% Tuesday, recouping the previous session’s losses.

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–With assistance from Natalia Kniazhevich.

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