Oil reverses gains as traders see central banks staying hawkish
BNN Bloomberg
Oil reversed early gains after hot inflation data led traders to anticipate that central bankers are likely to stay hawkish for the coming months.
West Texas Intermediate dropped below US$76.50, having earlier reached US$77.74 after China and India released strong manufacturing and oil-sales data.
Crude has fallen this year as the prospect of tighter U.S. monetary policy and rising inventories have so far outweighed optimism that Chinese demand will strengthen following the end of coronavirus lockdowns. Russian flows are also in focus as western sanctions and bans linked to the war in Ukraine tighten. Although Moscow has largely managed to keep exports going by finding new buyers, there are signs of friction in markets including India, a key outlet for Russian crude.
