| PRICES |
|---|
|
PRICES
Oil declined alongside a broader market sell-off, with prices losing some momentum after hitting $70 a barrel in New York for the first time in over two years.
U.S. benchmark crude futures were largely weaker on Monday after failing to sustain a move beyond the psychological $70-a-barrel level. Chinese oil imports, a major reason behind this year’s rally, fell to a five-month low in May as private refiners held back on purchases amid scrutiny of government-issued purchases quotas. Adding pressure on prices, U.S. equities declined with investors weighing inflation risks.
Still, prices have risen more than 40% this year with support from a robust economic rebound in the U.S., China and Europe. Europe’s cities are as congested as they were in 2019, and the number of passengers passing through airport security checkpoints in the U.S. continues to climb. Those are the latest signs of an oil demand recovery in the Western world, and overall consumption should remain strong according to BP Plc.
“We’re likely bound in this current trading range,” and likely seeing “some risk-off trading today after reaching $70,” said Bart Melek, head of commodity strategy at TD Securities. Meanwhile, “there continues to be some concern regarding demand globally, but that’s likely temporary.”
No comments:
Post a Comment