Oil Rebounds From Tumble as Traders Focus on Demand Outlook - BLOOMBERG
(Bloomberg) -- Oil rose after the biggest one-day drop this year as traders focused on the still-positive demand outlook and appetite for risk rebounded.
West Texas Intermediate climbed almost 1% in early Asian trading after ending more than 2% lower on Monday, when U.S. equities swooned then recovered. The volatile trading comes as the Federal Reserve prepares the ground for interest-rate increases, and Russian troops mass on the border with Ukraine.
Crude rallied to a seven-year last week as worldwide consumption recovered from the impact of the pandemic, draining stockpiles. U.S. oilfield services giant Halliburton Co. said that it expected the industry environment to remain supportive as it reported a surge in profit and a higher dividend on Monday.
A Russian invasion of Ukraine would potentially have widespread implications for energy and commodities markets, including oil. The risk of that happening in the next few weeks is more than 50%, according to RBC Capital Markets analyst Helima Croft.
U.S. crude stockpiles are headed for another monthly drop in January after contracting by 15% in 2021. The industry-funded American Petroleum Institute will release its latest weekly estimate of nationwide oil inventories on Tuesday, as well as key products including gasoline.