(Bloomberg) — Oil edged lower for a second day as weakness in global equity markets compounded concerns about soft consumption in China, the biggest crude importer.
Most Read from Bloomberg
Brent traded near $73 a barrel, following a 0.8% drop in the previous session. Equities retreated in most regions, adding to the pressure on crude from weak Chinese refining and retail sales numbers on Monday.
Crude has fallen by about 15% this half on concerns over the outlook for next year. Still, since the middle of October futures have been trading in a narrow range, pushing oil’s 30-day historical volatility to the lowest since August. Pessimism over China dragged prices away from the upper end of the price band.
“The poor showing of China data yesterday and the abject performance in global manufacturing PMIs maintains the idea that beyond tariffs on Russia and Iran, demand doubt is never far away in oil thinking,” said John Evans, an analyst at brokerage PVM, adding that traders are looking ahead to a Federal Reserve interest rate decision on Wednesday.
European nations are set to clamp down on tankers moving Russian crude, after the US signaled it may lower a price cap on the producer’s oil to limit access to funds for the war in Ukraine. On Tuesday, the UK also announced fresh sanctions targeting alleged “lynchpins” that enable the trade of Russian oil, along with 20 shadow fleet vessels.
To get Bloomberg’s Energy Daily newsletter in your inbox, click here.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.