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Oil Rally Stalls With China Woes After Breakout From Tight Range - BLOOMBERG
(Bloomberg) -- Oil eased from the highest level in almost three-months as wider markets also wavered on concerns over a misfiring Chinese economy.
West Texas Intermediate slipped below $73 a barrel, while Brent fell beneath $76. The small decline on Friday stalled momentum in a rally stoked by shrinking US crude stockpiles and fresh buying from quantitative funds after a close above key technical markers.
“The question now is whether this can kick toward the 200-day moving average,” said Chris Weston, head of research for Pepperstone Group Ltd. “That may need economics to improve.”
The outlook for 2025 remains uncertain, however, with expectations for oversupply, the possible revival of idled OPEC+ production and lackluster demand from top importer China. The return of Donald Trump to the White House at the end of this month also adds a level of unpredictability for global markets.
In a positive sign for prices, some Middle Eastern barrels have gained in value over recent days as a mix of robust refinery demand and disruption to flows from Iran and Russia by sanctions pushed regional values to a rare premium to the global Brent benchmark.
