Brent Crude Oil: futures fell toward $93 per barrel on Tuesday to snap a three-day winning streak, as market caution dominated sentiment ahead of US inflation data that could influence the Federal Reserve’s tightening plans and the trajectory of global growth.
Demand concerns driven by top crude importer China’s anti-virus restrictions and a deepening energy crisis in Europe
that heightened recessionary risks in the region also added to the bearish view.
Meanwhile, Brent Crude Oil prices rallied about 7% in the past three days and rebounded from over seven-month lows, lifted by a weaker dollar and signs of ongoing supply tightness in physical markets.
In the US, data showed that emergency oil reserves fell to the lowest level since October 1984, While as the government set a plan in March to release 1 million barrels per day over six months to tackle high fuel prices. Elsewhere, investors await OPEC’s monthly report on its near-term market outlook due for release later on Tuesday.
While Yesterday Crude Oil steadied near $93 per barrel on Monday, after rising more than 5% in the previous two sessions, as concerns about a weakening demand outlook and a US-led plan to impose a price cap on Russian oil weighed on sentiment.
Prospects of a demand-sapping global economic slowdown continued to pressure oil prices, driven largely by aggressive
monetary tightening by major central banks and top crude importer China’s Covid-19 curbs.