Oil reversed course in London, despite a raft of economic data from China adding to signs of recovery from the coronavirus pandemic.
Brent futures have steadily retreated after briefly topping $70 a barrel on Monday, a level the global benchmark has failed to sustain. U.S. crude futures also declined, and trading volumes were below average levels.
China’s industrial output surged in the first two months of the year, underscoring the strength of its V-shaped rebound and reinforcing expectations for increased energy demand.
But there are some less positive signs in the short-term. West Texas Intermediate crude’s nearest timespread flipped into a bearish contango structure -- signaling oversupply -- after stockpiles in the U.S. grew in recent weeks.
- Brent for May settlement slipped 0.7% to $68.73 a barrel as of 12:56 p.m. in London
- West Texas Intermediate for April dropped 0.8% to $65.11
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