Oil eases in rangebound market as Fed and China demand face off

Oil edged lower as investors weighed the prospect for further U.S. monetary tightening against signs of improving demand from China following the end of COVID Zero.

Brent futures retreated below US$84 a barrel after closing 1.3 per cent higher on Monday. Prices have bounced within a relatively tight range this year, and a measure of volatility remains near the lowest level in 13 months. 

Market watchers continue to weigh concerns that more Federal Reserve interest-rate hikes will sap demand, against expectations that China's reopening will drive an increase in commodity buying. The world's largest importer has been buying more oil from Russia and snapping up ships for cargoes from the U.S. as it ramps up imports.