Oil extends rangebound run as traders eye China, dollar outlooks
BNN Bloomberg
Oil switched between gains and losses, as the market remains caught between the outlook for global growth and China's easing of COVID restrictions.
West Texas Intermediate futures traded near US$89 a barrel and have been in a range of just over US$10 for the last month. The dollar rose for the first time in three sessions, making commodities priced in the currency more expensive, overshadowing expectations for a rebound in Chinese demand after the nation eased some of its strict COVID Zero restrictions.
An increase in Chinese crude consumption could lead to a further tightening of the market, which is facing European Union sanctions on Russian oil flows next month after the OPEC+ alliance initiated a round of supply cuts. U.S. Treasury Secretary Janet Yellen said that without a price cap it is likely that Russia will have to shut in some of its oil production.
