Oil set for sixth monthly loss on deteriorating demand outlook
BNN Bloomberg
Oil headed for a sixth straight monthly decline — its longest run of such losses in more than eight years — as slowdown concerns in the U.S. and Asia weighed on the outlook.
Investors see U.S. inflation continuing to accelerate, bolstering expectations the Federal Reserve will be forced to keep raising rates, making a recession more likely, which would dent energy consumption. While West Texas Intermediate rose above US$75 a barrel Friday, they are also set for a second weekly loss.
Falling profit margins for refiners in Asia are signaling demand weakness in the biggest oil-importing region, but China's recovery is starting to take hold. Top processor Sinopec said the nation's rebound will boost demand growth for refined oil products by more than 10 per cent this year.
