US data continues the wind in oil

The data perceived as a sign of a recession in the US continued to weigh on oil. US crude oil is on the negative side on the new trading day after the Wednesday session. Oil fell as disappointing US economic data sparked recession fears and led to a sell-off across Wall Street. US crude oil fell almost 1% to its highest intraday price since early December before reversing course. Demand data from China lifted oil prices at the start of the session, but was weighed down by the rise in commodities, a sharp decline in stocks and a recovery in the dollar. Slowing retail sales in the US have revived concerns of a slowdown despite China’s recovery from Covid-related losses. The International Energy Agency (IEA) said in its latest report that global oil markets faced a larger-than-expected surplus in the first quarter, with global consumption on track to reach a record daily average this year, led by China. “The rally in oil cannot last long after energy investors see broad weakness across large parts of the US economy. Crude demand concerns are rising as the consumer is much weaker than expected and the manufacturing sector is in decline,” said Ed Moya, senior market analyst at Oanda. Saudi Aramco, which reinforced the IEA’s bullish demand outlook, said it was optimistic that consumption would rise. Investors are also looking for signs on Russia’s production path as sanctions on refined fuels come into effect early next month.