Adding to the bearishness, OPEC Secretary-General Haitham Al-Ghais said that slowing oil consumption in Europe and the US poses a concern, even as Asia experiences “phenomenal” growth. Citigroup Inc. said that global supply is ample and demand remains low.
- WTI for April delivery was 0.5% lower at $77.21 a barrel at 9:45 a.m. in London.
- Brent for May lost 0.4% to $83, after falling 3.4% on Tuesday.
Before the Powell-driven selloff, oil had been trading at the highest level since late January. Prices also eased after China this week set a cautious economic growth target for 2023, denting some of optimism about a major revival in demand from the world’s biggest oil importer.
“The most inverted US yield curve in decades now signals an even bigger risk of a recession and with that weakening demand for fuel,” said Ole Hansen, head of commodities strategy at Saxo Bank. “Overall, I see crude oil thoroughly stuck with no clear direction for months now.”