Oil rebounds after 6% dive on demand, China concerns

Oil rebounds after 6% dive on demand, China concerns

Dubai: Oil edged higher after slumping to an eight-month low, with investors assessing global demand as China pushes on with its Covid Zero policy and central banks tighten monetary policy to fight inflation. West Texas Intermediate pushed back toward $83 a barrel after collapsing by almost 6 per cent on Wednesday, the biggest loss since mid-July. Several Chinese centers face anti-virus lockdowns, including the megacity of Chengdu, imperiling energy demand in the world’s biggest importer. Crude has tumbled by almost $50 a barrel since peaking in March in the initial aftermath of Russia’s attack on Ukraine. The retreat has been driven by a global slowdown as the Federal Reserve boosts rates, lifting the dollar to a record. On Wednesday, Fed Vice Chair Lael Brainard said that the US central bank would have to tighten policy to restrictive levels. Oil’s deep loss on Wednesday came despite several supportive market factors. Russian President Vladimir Putin said the country would not supply energy to any nations that backed a planned US-led price cap on the nation’s crude. In addition, the Energy Information Administration raised its outlook for global oil demand, while also cutting the forecast for US supply. “Some bargain-hunting buying is to