(Bloomberg) -- Oil held a drop as a stronger US dollar and concerns over an economic slowdown weighed on sentiment before a slew of market data.
West Texas Intermediate traded below $80 a barrel after losing 1.2% on Monday. The dollar climbed over the previous three sessions as investors boosted bets the Federal Reserve will raise borrowing again costs in May, though its aggressive rate-hike cycle may be nearing the end.
Crude has rebounded since hitting a 15-month low last month as a concerns over a banking crisis faded, US stockpiles fell, and the Organization of Petroleum Exporting Countries and its allies cut supply. While many in the market are bullish on better demand from China, Citigroup Inc. said the top importer’s recovery has been slower than expected and forecast weaker prices.
“Oil is a bit of an oddity today as it extracts some buffer from an interventionist OPEC+,” said Vishnu Varathan, Asia head of economics and strategy at Mizuho Bank Ltd in Singapore. Despite “some adjustments suggesting that the Fed may not turn aggressively dovish so soon, oil has retained traction even in the face of US dollar strength.”
Traders will get a mass of market intelligence this week. In the US, the Energy Information Administration unveils its short-term outlook later Tuesday, while OPEC and the International Energy Agency also issue reports this week.
(Source: Yahoo Finance), all rights reserved by original source.