Oil Steadies on Course for Its Least Volatile Week Since 2021 - Yahoo Finance UK
Oil Posts Least Volatile Week Since 2021 With Prices Rangebound
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(Bloomberg) -- Oil eased lower as a brief outage on North America’s Keystone pipeline failed to shake prices out of the tightest weekly trading range in years.
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West Texas Intermediate fell 1.2% to settle near $78, further retreating from the key psychological level of $80 a barrel. Meanwhile, pipeline operator TC Energy Corp. confirmed Keystone’s integrity, adding that service was temporarily suspended “as a precautionary measure” and that no crude was released.
Oil has traded in a tight band this year, with even less volatility this week, confining Brent prices to their narrowest range since September 2021. Cutbacks by OPEC+ and rising tensions in the Middle East and Red Sea have been balanced by surging supply from producers outside the cartel including the US. Persistent concerns about China’s growth have added to headwinds.
Still, crude is getting support from Federal Reserve Chair Jerome Powell’s comments that the central bank is getting close to the confidence it needs to start lowering interest rates. The dovish news pushed the dollar to its sixth session of declines, bolstering commodities priced in the currency. Meanwhile, China’s oil demand has entered a low-growth phase as the nation shifts away from fossil fuels, the country’s biggest energy producer said.
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--With assistance from Grant Smith.
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Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.