First negative quarter for oil since 2020

Oil is posting a negative quarterly performance for the first time since 2020 as macro indicators are shaken. Oil lost ground as concerns over a global economic slowdown and a stronger dollar overshadowed the possibility of tightening supply. U.S. crude and Brent futures were flat on the last trading day of the week, month and quarter. U.S. crude lost 23 percent in the quarter. U.S. crude settled around $81 a barrel and Brent crude settled around $88. Fed officials reiterated on Thursday that they will continue to raise interest rates to rein in high inflation, adding to concerns about demand. The dollar added to the downside as indicators hit a record this month. China’s economic recovery continues to struggle amid lockdowns in major cities and a continuing housing market downturn. “The weak quarter for oil is a reflection of the oil market losing its firmness as global recession risks rise. Energy investors are clearly expecting a tough move from OPEC+,” said Ed Moya, senior market analyst at Oanda Corp. The Organisation of the Petroleum Exporting Countries and its allies have begun talks on reducing oil production at their meeting next week, but the extent of any reduction in supply is still under consideration, delegates saidSetimes Setimes