Oil edges lower after its biggest weekly gain since early April
BNN Bloomberg
Oil dipped, eroding its biggest weekly gain since early April, as investors juggled signs of tightening supply and persistent macro-economic concerns.
Brent futures traded near US$78 a barrel having closed 4.8 per cent higher last week following a pledge by Saudi Arabia and Russia to reduce supply. The market is flashing signs of strength and speculators have boosted their bullish bets for the global benchmark and West Texas Intermediate crude.
However, Treasury Secretary Janet Yellen said the risk of a U.S. recession is “not completely off the table,” adding an element of caution to the market. Data from China showed its economy is on the brink of deflation, while miner Rio Tinto Group said it sees a host of near-term economic challenges in the nation.
