Oil set for fourth monthly loss as Fed tightening eclipses China

Oil headed for a fourth consecutive monthly decline as concerns over tighter monetary policy and swelling stockpiles in the U.S. eclipsed optimism about rising demand in China.

West Texas Intermediate ticked above US$76 a barrel, but is still down about 3 per cent this month. Crude has been under pressure in February as persistent inflation in the US spurs expectations that the Federal Reserve will keep raising interest rates. That's aided the dollar, hurting commodities priced in the currency.

Oil prices have also been weighed down by rising U.S. stockpiles, which are at the highest level since May 2021. As part of that increase, there have been builds in crude holdings at the key storage hub in Cushing, Oklahoma.