Oil heads for weekly loss as China concerns and rate angst flare
BNN Bloomberg
Oil headed for its first weekly loss since June as concerns over economic weakness in China and potentially even tighter monetary policy in the U.S. combined to overshadow signs of a solid physical market.
West Texas Intermediate traded above US$80 a barrel, set for a drop of about three per cent this week as a stream of poor economic data and widening housing crisis in China has weighed on risk assets including oil. That has eclipsed signs of a tighter crude market, with U.S. stockpiles declining to the lowest level since January.
In the U.S., Federal Reserve policymakers have signaled they may not be done hiking rates to tame inflation, helping to lift Treasury yields and aiding the dollar. The U.S. currency is on course for a fifth weekly gain, the longest run in more than a year, which dulls the allure of commodities for overseas buyers.
