Oil pauses as traders await double dose of U.S. inventories
BNN Bloomberg
Oil took a breather after a three-day rally as traders continued to weigh the risk of an economic slowdown against ongoing tightness in the crude market.
West Texas Intermediate traded near US$112 a barrel after gaining over the previous three sessions, amid supply outages from Libya to Ecuador. Wednesday will see an unusual US inventory data release, with two weeks being published simultaneously after an outage caused by a power issue.
Chinese President Xi Jinping, meanwhile, doubled down on the nation’s COVID Zero strategy, raising concerns about the outlook for demand. However, the world’s largest crude importer also said it will offer subsidies to refiners and won’t raise domestic prices if international crude rises above US$130 a barrel.
