After concerns about global demand, oil “schools prepare for loss.
Oil loses its premium for the third week as the deteriorating global economic environment raises demand concerns, and the rising U.S. dollar makes crude oil more costly.
U.S. crude was on track to close the week down more than 1%, hitting $85 a barrel. Brent oil also tested $90 during the week.
Crude oil has been on a downward path for more than two years, reversing all the gains seen after Russia’s invasion of Ukraine. Global equities and other commodities, including copper, fell as investors readjusted their expectations for the economic outlook. In the U.S., some of the leading companies pointed to rising risks this week.
Warren Patterson, Head of Commodities Strategy at ING Group NV in Singapore, said: “The sentiment in the oil market remains largely negative as China’s demand concerns persist. The strength we see in the dollar, combined with more hawkish Fed expectations, won’t do much for much of the commodity complex.” said.