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Oil steadied in Asia — after rallying around 7 percent over the past three sessions — as investors assessed the latest commentary from Federal Reserve officials and mixed Energy Information Administration data.
West Texas Intermediate futures traded near US$78 a barrel after closing almost 2 percent higher on Wednesday.
A raft of Federal Reserve speakers reinforced the idea that interest rates will need to keep climbing to combat inflation, putting concerns about a possible drag on demand back in focus.
The EIA report showed refinery utilisation rose to the highest since December, while crude stockpiles at the storage hub at Cushing, Oklahoma, swelled to the largest since July 2021. Fuel inventories also expanded more than expected.
Crude has endured a period of choppy trading since the start of the year as investors look for signs of a sustained rebound in Chinese demand, which some predict will drive prices above US$100 a barrel.
Key timespreads are signalling a tight market after recent disruptions to Norwegian and Azerbaijani flows.
“Participants continue to wait for clearer signals on how Chinese demand and Russian supply evolve,” said Warren Patterson, Singapore-based head of commodities strategy at ING Groep.
“Adding even further uncertainty to the oil market and risk assets in general is Fed policy in the months ahead.” – Bloomberg
Online Reporter