Oil swings with recession fears, Iran talks dominating market
BNN Bloomberg
Oil pared early losses on Wednesday after China signaled it would take steps to boost a flagging economy, as traders awaited further news about the potential resumption of the Iran nuclear deal.
West Texas Intermediate futures edged higher to US$86.91 a barrel after dropping to a fresh seven-month low, while Brent continues to trade above US$92 a barrel.
China’s Premier Li Keqiang has urged more pro-growth measures, while US industrial data beat estimates on Tuesday. Still, concerns over global economic growth and its consequent effect on oil demand remain pervasive. Discussions over a revived nuclear deal with Iran are progressing, with the European Union viewing Iran’s response as constructive.
“Recession fears are the main driver along with the lack of liquidity - we’ve seen traders, fund managers, speculators all pulling out,” Luke Longhurst, head of fuel at brokers Freight Investor Services said by phone.
