Oil prices held near their lowest since January as concerns about a U.S. slowdown overshadowed a rally driven by lower inventories.
Brent crude traded near $76 a barrel after a four-session slide, with selling pressure building in that direction via algorithmic trading. West Texas Intermediate crude was below $72. U.S. job growth may have been less robust in the year to March than previously reported, adding to a string of recent signs that the world’s biggest oil consumer is losing momentum.
The global oil gauge has now lost all of its gains so far this year, as concerns about consumption — in the US as well as China — offset the impact of OPEC+ supply cuts. Traders will be focusing on a monetary policy symposium in Jackson Hole, Wyoming, where Federal Reserve Chairman Jerome Powell is due to speak on Friday, adding more detail on the state of the economy.
Wednesday's selling came despite figures showing U.S. crude inventories fell to their lowest since January, and distillate and gasoline holdings also fell.
In the Middle East, the United States continued to push for a ceasefire between Israel and Hamas in the 10-month conflict in Gaza. President Joe Biden and Vice President Kamala Harris spoke with Israeli Prime Minister Benjamin Netanyahu yesterday to discuss a deal to end the fighting.
