Oil pulls back from seven-week high
Oil prices edged down on Thursday, retreating from the previous session’s seven-week high, as some investors took profits after U.S. stocks closed lower and in anticipation of slower winter demand as well as the return of Kurdish supplies.
Brent futures were down 43 cents, or 0.6%, at $68.88 a barrel by 1310 GMT. U.S. West Texas Intermediate futures lost 48 cents, or 0.7%, to $64.51.
Both benchmarks gained 2.5% on Wednesday to reach their highest since August 1, driven by a surprise drop in U.S. weekly crude inventories and concerns that Ukraine’s attacks on Russia’s energy infrastructure could disrupt supplies.
"We have a generally risk-off market," said Giovanni Staunovo, commodity analyst at UBS. Two consecutive down days for U.S. equities are putting pressure on oil prices, he added.
Comments by U.S. Federal Reserve Chair Jerome Powell on Tuesday about potentially stretched equity valuations further spooked markets, including oil, said Jorge Montepeque at Onyx Capital Group.
Price pressure also came from bearish expectations on supply fundamentals, with more oil expected soon from Iraq and Kurdistan.
"The return of Kurdish supplies adds back fears of an oversupply narrative, propelling a pullback in prices that hover near a seven-week high," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Oil flows from Iraqi Kurdistan were expected to resume in days after eight oil companies struck a deal on Wednesday with Iraq’s federal and Kurdish regional governments.
Source: Reuters
