“You can battle against positions all you want, but at the end of the day there were some very bearish developments there,” Yawger said in an interview.
In the afternoon, the Federal Reserve delivered a smaller rate hike than at its December meeting, and Chairman Jerome Powell said the central bank has made progress in the battle against inflation. While the comments helped equities erase their losses, they failed to revive crude.
Oil capped a third straight monthly loss in January, even amid optimism that China’s turn away from its strict Covid Zero policy will rekindle demand in the world’s largest crude importer. While growth is picking up, weakness among the country’s manufacturers and home sales suggest the recovery isn’t yet on a sure footing.
See also: Global oil surplus to persist in 2026 as demand sags, IEA says
Prices:
- WTI for March delivery fell US$2.46 ($3.23) to settle at US$76.41 a barrel in New York.
- That’s the lowest close since Jan 10
- The commodity also slid below its 50-day moving average of US$77.60
- It dropped past its 50-day moving average of US$83
