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Oil was bouncing back on Thursday after slipping below $70 a barrel.
Prices had slipped on Wednesday to the lowest levels since June on the subdued outlook for oil demand. Prospects for weak economic growth over the next few quarters, after almost two years of interest-rate increases by most of the world’s central banks, are weighing on crude. A tepid recovery in China from the end of Covid-19 lockdowns last year is adding to the pain.
“A protracted period of demand malaise would send shivers through most markets, with the outlook from oil to luxury goods called into question,” said Sophie Lund-Yates, an analyst at Hargreaves Lansdown.
The drop in oil prices came despite the Organization of the Petroleum Exporting Countries last week agreeing to further production cuts. Still, those efforts to restrict demand may still put a floor under prices, preventing them from falling too far.
West Texas Intermediate, the U.S. standard, was up 0.9% at $69.99 a barrel. Brent crude, the international standard, climbed 1% to $75.06 a barrel.
Write to Brian Swint at brian.swint@barrons.com
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