Oil costs prolong losses, firmer greenback and provide outlook weigh

By Colleen Howe

BEIJING (Reuters) – Oil costs prolonged losses right into a second straight session on Tuesday on technical correction after final week’s rally, whereas forecasts for ample provide and a agency greenback additionally weighed.

Brent futures fell 28 cents, or 0.37%, to $76.02 a barrel by 0148 GMT, whereas U.S. West Texas Intermediate (WTI) crude fell 33 cents, or 0.45%, to settle at $73.23.

Each benchmarks rose for 5 days in a row final week and settled at their highest ranges since October on Friday, partly as a consequence of expectations of extra fiscal stimulus to revitalise China’s faltering economic system.

“This week’s weak spot is probably going as a consequence of a technical correction, as merchants react to softer financial information globally that undermines the optimism seen earlier,” stated Priyanka Sachdeva, senior market analyst at Phillip Nova, referring to bearish financial information from the U.S. and Germany.

“Moreover, the greenback’s energy is catching up with market sentiment and seems to be trimming the present positive factors in oil costs,” Sachdeva stated.

The U.S. greenback wavered however remained near the two-year peak it touched final week amid uncertainty across the extent of tariffs from the incoming Trump administration.

A stronger greenback makes oil costlier for holders of different currencies.

Rising demand from non-OPEC international locations, coupled with weak demand from China, are anticipated to maintain the oil market nicely provided subsequent yr, and that has additionally capped worth positive factors.

“The transfer larger in crude oil costs seems to be operating out of momentum,” ING analysts wrote in a observe.

“Whereas there was some tightening within the bodily market, fundamentals by 2025 are nonetheless set to be comfy, which ought to cap the upside.”