Oil reverses gains as traders see central banks staying hawkish

Oil reverses gains as traders see central banks staying hawkish

International News















BLOOMBERG

Oil dipped after hot inflation data led traders to anticipate that central bankers are likely to stay hawkish for the coming months, offsetting hopes for higher demand from Asia.

West Texas Intermediate dropped below $76.50, reversing earlier reached gains after China and India released strong manufacturing and oil-sales data.

Crude has weakened this year as the prospect of tighter US monetary policy and rising inventories counter optimism that Chinese demand will strengthen following the ending of coronavirus lockdowns in the world’s second-biggest economy.

Russian flows are also in focus as western sanctions and bans linked to the war in Ukraine tighten. Although Moscow has largely managed to keep exports going by finding new buyers, there are signs of friction, including in India, a key outlet for Russian crude.

While Chinese oil demand is likely to rebound along with the economy, there’s the concern that high rates in the US will make the dollar even stronger, weighing on crude prices, said Edward Bell, senior director of market economics at Emirates NBD Bank. WTI for April delivery fell 0.8% to $76.40 a barrel in London. It earlier rose 0.9% to