Oil Falls Amid Broader Market Pressure

Oil erased gains from the past two sessions as earnings from multiple US companies disappointed, potentially signaling a dour short-term outlook for energy traders.

West Texas Intermediate settled at $80.13 a barrel, shedding almost 2%, the biggest drop since the first week of January. Oil succumbed to broader market pressure after disappointing results from a handful of economic-activity bellwethers, such as Union Pacific Corp and 3M Co., led investors to shun risk. 

These results have tempered optimism for the economy in the near-term, said Ed Moya, senior market analyst at OANDA. “That has oil prices giving up some of its recent gains.”

Traders will continue to monitor other earnings for any clues that could identify the economic outlook for China. Coming up, many will be sifting through the results of multinationals like Tesla Inc., as well as oil giants Chevron Corporation and Exxon Mobil Corporation for a sense of where they see the demand in the world’s largest crude importer, said Moya. 

Prices:

• WTI for March delivery fell $1.49 to settle at $80.13 a barrel in New York.
• Brent for March settlement shed $2.06 to settle at $86.13 a barrel.

Oil advanced over the past two weeks on China’s swift pivot away from Covid restrictions, which may spur daily consumption to hit a record in 2023. Still, OPEC and its allies are staying conservative with production, as the group is expected to leave levels unchanged when they meet next week.

(with assistance from Julia Fanzeres)