Oil steadied with the market facing a mixed demand outlook after a recent rally and the dollar climbing.
Futures in London were little changed below $70. The demand picture remains uneven across various regions, with Indian fuel sales falling in February amid higher pump prices, while demand is climbing in America and the U.K.
The global Brent benchmark started this week with a push above $70 a barrel after attacks on Saudi oil infrastructure, before retreating. While attention is centered on the recovery in demand and OPEC+ policy, there are concerns higher prices might encourage a surge in U.S. production by shale drillers in a move that would add to supply concerns amid sharply-rising flows of Iranian crude into China.
“We’ve tested the $70-$72 resistance for Brent, and that level held pretty well,” said Hans Van Cleef, senior Energy Economist at ABN Amro. “I’m still cautious for a serious downward correction.”
- Brent for May settlement rose was little changed at $69.63 a barrel at 10:11 a.m. London time
- West Texas Intermediate for April delivery lost 11 cents to $65.91
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