New York Brent crude oil slipped more than 1% in a volatile session on Tuesday as persistent concerns about global economic growth curbed supply and prompted investors to book profits on the previous day’s gains.
Broader financial markets are firmly focused on Wednesday’s release of the minutes of the US Federal Reserve’s latest meeting, after recent data raised risks to a longer hold on interest rates.
Global benchmark Brent crude fell $1.02, or 1.2%, to $83.05 a barrel.
US West Texas Intermediate crude (WTI) for March, which expires on Tuesday, fell 18 cents, or 0.2%, to $76.16 a barrel. The second-month contract slipped 19 cents, or 0.2%, to $76.27.
Price today “appears to be more technical in nature,” said Phil Flynn, analyst at Price Futures Group. “We think the same old concerns about the strengthening of the dollar and the interest rate situation are fading away.”
A stronger greenback makes dollar-denominated oil more expensive for holders of other currencies.
Earlier in the session, markets edged higher with Brent briefly turning positive after better-than-expected business activity surveys in Europe and the UK pointed to a less bleak European economic outlook than previously feared.
On Monday, oil prices rose more than 1% on optimism over Chinese demand, which analysts expect to rebound after the end of COVID-19 restrictions this year.
The WTI contract did not settle on Monday due to a public holiday in the United States, with industry and official weekly US oil inventory reports both delayed by a day to Wednesday and Thursday, respectively.
US crude stockpiles have risen weekly for nearly two months, and last week were forecast to rise by 1.2 million barrels in a Reuters poll.
However, signs of tight supply took some support.
Russia plans to cut crude output by 500,000 barrels per day, or about 5% of its output, in March after Western countries imposed price caps on Russian oil and oil products because of its invasion of Ukraine.
Deputy Prime Minister Aleksandar Novak said on Tuesday that the cuts, announced this month, would only apply to March output, the news agency reported.
Russia is part of the OPEC+ grouping, comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies, which in October agreed to cut oil production targets by 2 million bpd through the end of 2023.
Separately in the natural gas market, US regulators approved a partial restart of Freeport LNG’s Texas facility, the US’s second largest liquefied natural gas export plant, which was closed after a June fire. was given.
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