Crude oil resumed its decline on Russia’s war in Ukraine and China’s Covid-19 resurgence continued to rattle the market.
The West Texas Intermediate futures trading around $104 while Brent is trading around $106 a barrel.
Investors are weighing a raft of news, from shrinking US fuel stockpiles ahead of the summer driving season, rising inflation and cautious optimism about China’s virus outbreak.
“It’s just a very volatile market within a relatively tight $100-to-$110 a barrel range,” said Stephen Innes, managing parter at SPI Asset Management Pte. “Oil prices are likely to remain capped until China either changes Covid policy or shifts out of lockdown.”
US distillate inventories fell by 913,000 barrels last week to 104 million barrels, according to EIA data released on Wednesday. Crude stockpiles rose by 8.5 million barrels. The US driving season starts at the end of this month.
