Oil's advance takes breather as investors assess China reopening
BNN Bloomberg
Oil fell for the first time in eight sessions as traders took stock of the outlook for worldwide demand, with China's reopening delivering a lift while other parts of the global economy slow.
West Texas Intermediate fell toward US$79 a barrel after rallying more than 8 per cent last week. China ditched COVID-19 curbs in late 2022 after years of strict lockdowns. That's set to improve economic activity and mobility, with analysts forecasting oil demand in the top crude importer will likely hit a record.
Crude has had a bumpy start to the year, collapsing in the opening week before rebounding. In addition to China's swift pivot, support for crude prices in recent sessions has come from growing expectations that the Federal Reserve is now nearing an end to rate hikes, and a weakening dollar. Traders are also tracking the impact of sanctions on Russian oil and product flows.
