(Bloomberg) — Oil extended declines below $100 a barrel ahead of US and Chinese economic data that will gauge the health of the global economy.
West Texas Intermediate fell in early Asian trading after tumbling around 9% over the previous two sessions. Investors will be watching the print for China’s April factory gate prices and the US consumer-price index, as a stronger dollar puts pressure on commodities like oil that are priced in the currency.
The oil market has been whipsawed over the last couple of months by Russia’s invasion of Ukraine and Covid-19 lockdowns across China. The war has fanned inflation, driving up the cost of everything from food to fuels, with retail gasoline in the US hitting a record ahead of the summer driving season.
Oil is still up more than 30% for the year after a robust start underpinned by economies rebounding from the pandemic. The oil ministers of Saudi Arabia and the United Arab Emirates warned that spare capacity is decreasing in all energy sectors as producers slash investment, driving up prices.
The American Petroleum Institute reported US crude stockpiles rose by 1.62 million barrels last week, according to people familiar with the figures. Fuel inventories also expanded. Government data is due later Wednesday.
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Source : BLOOMBERG