Oil Dips as Lack of New Catalysts Halts Rally at Technical Level
- Timespreads for Brent, WTI remain in backwardated structure
- Prices caught between China demand concerns, lower OPEC output
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Oil fell as the lack of fresh drivers prompted some investors to exit positions ahead of the weekend and the dip below a key technical indicator accelerated selling.
West Texas Intermediate slipped nearly 3% to end the session under $77 a barrel, below its 200-day moving average and the lowest close since Feb. 8. Timespreads are indicating a more robust market, and US crude inventories expanded less than forecast, but many analysts still expect a global surplus this year. WTI still is up about 7% this year.