Oil extends volatile run as tight supply vies with growth woes
BNN Bloomberg
Oil switched between gains and losses as investors continued to weigh a tight market against concerns over a global economic slowdown.
West Texas Intermediate surrendered earlier gains to trade near US$85 a barrel. Crude remains within the wide range it has been trading in for the last month, and turned lower on Tuesday as the dollar pared an earlier decline. The U.S. is moving toward releasing further barrels from its strategic oil reserve in order to bolster supply.
Crude's choppy trading in October has seen the market caught between two divergent factors. Key time spreads are signaling tightness before OPEC+ output cuts from November, but bearish drivers such weak Chinese demand and aggressive monetary policy from central banks continue to drag on the market.
