Oil fell for a fourth day on concerns over the Chinese economy and the possibility of even tighter US monetary policy.
West Texas Intermediate dropped toward $79 a barrel, with futures on track for their longest daily losing run since May. Worries over top importer China’s post-pandemic recovery have taken center stage this week despite vows of support from policymakers. That’s hurt appetite for risk assets including commodities.
In the US, Federal Reserve officials remained concerned that inflation would fail to recede and that further interest rate rises could be needed, according to minutes from the central bank’s July meeting. Higher borrowing costs may hurt energy demand, while supporting gains in the US dollar.
Oil remains well above the lows hit in June after OPEC+ heavyweights Saudi Arabia and Russia reduced supplies, and there have been further signs of tightening this week. US nationwide crude inventories have contracted to the lowest level since January after dropping for four of the past five weeks, according to figures from the Energy Information Administration.
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