Oil Slips From One-Month High as Economic Uncertainty Persists - Bloomberg

Oil Slips From One-Month High as Economic Uncertainty Persists - Bloomberg:

Oil retreated after entering a bull market in New York, as the tension between an uncertain economic outlook and efforts by OPEC to restrict supplies continued to cause volatile trading.

West Texas Intermediate futures fell as much as 1.7 percent after a rally on Wednesday brought crude’s rebound from an 18-month low in December to 23 percent. Prices had climbed as Saudi Energy Minister Khalid Al-Falih expressed confidence that production curbs by the OPEC+ coalition would balance the market. Yet investors remain wary as they await concrete details of U.S.-China trade negotiations, which are clouding the economic outlook.

Oil’s eight-day gain through Wednesday marked its longest advance since mid-2017, reflecting a return of economic optimism as the U.S. and China worked on resolving their trade dispute and the Organization of Petroleum Exporting Countries began production cuts. Yet an increase in American petroleum inventories on Wednesday served as a reminder that booming U.S. shale-oil production may still leave the global market with more supply than it needs.