Oil swings with focus on China factory activity, U.S. debt deal
BNN Bloomberg
Oil fluctuated as expanding factory activity in China and progress on a U.S. debt deal compete with persistent concerns over the demand outlook.
West Texas Intermediate hovered near US$68 a barrel after losing around six per cent over the previous two sessions. A private survey showed a slight expansion of Chinese manufacturing activity in May, a surprise improvement that contradicted official data. The House passed debt-limit legislation, sending the measure to the Senate for consideration as a default deadline looms.
Traders will be looking ahead to an OPEC+ meeting over the weekend in Vienna to discuss the group’s production policy. Resilient Russian exports are part of the reason why futures are down around 15 per cent this year, as well as aggressive monetary tightening by the Federal Reserve.
