Oil steadies as China's waning recovery offsets U.S. reserve fill

Oil steadied as concerns over China’s economic rebound offset bullishness around a U.S. plan to start refilling its depleted strategic reserves.

West Texas Intermediate traded near US$71 a barrel after closing 1.5 per cent higher on Monday. China’s consumer spending and industrial activity grew at a slower pace than expected in April, adding to signs that the rebound post-COVID Zero is losing momentum. Crude processing held near a record, however.

“The key question though is what the market will focus on: the weaker-than-expected overall numbers or the strong oil data?” said Warren Patterson, head of commodities strategy for ING Groep NV. “You would think the latter, however, the oil market has been largely macro-driven in recent weeks.”