Oil edged lower after a weekly drop as traders awaited a fresh raft of clues about global crude demand and balances in March and beyond.
Brent dipped toward $82 a barrel after losing more than 2% last week, with US counterpart West Texas Intermediate above $76. Market outlooks will come this week from International Energy Week in London, a major industry gathering. In addition, US inflation data will shape expectations for when the Federal Reserve will start cutting rates, influencing energy demand and the dollar’s path.
In wider markets, a gauge of the US currency held its ground, while most other commodities were weaker along with crude, including a decline in copper.
Crude has traded in a narrow band of about $3 a barrel for the past two weeks, with tensions in the Middle East and OPEC+ supply curbs offsetting the impact of higher production from outside the group, including the US. OPEC+ is widely expected to prolong its current cutbacks into the next quarter at its meeting early next month.
There are some positive signals on demand. In China, a boom in travel amid the Lunar New Year holidays has raised hopes of a more sustained recovery in consumption. Local refiners have been snapping up cargoes from across the world since the mid-February holiday, according to traders, as well as having increased term supplies from Saudi Arabia for March.
In North Africa, meanwhile, there was a minor interruption to flows from Libya. Shipments from the 50,000-barrel-a-day Wafa oil field were halted on Sunday due to protests, a person familiar with the matter said.
Brent for April settlement fell 0.3% to $81.39 a barrel at 9:43 a.m. in Singapore.
WTI for April delivery was 0.3% lower at $76.27 a barrel.
Source : Bloomberg
