Oil prices fell after technical support levels limited losses resulting from risk-off sentiment in the broader markets.
The price of West Texas Intermediate (WTI) fell 0.7% to just over $78 a barrel after moving in the $2 range during the day. Stock markets fell after traders received mixed economic data ahead of Federal Reserve Chairman Jerome Powell's testimony in Congress.
The 200-day moving average of crude oil - at around $77.84 - provided support for prices from continuing the decline.
Latest Oil Prices
WTI CRUDE $78.14 -0.76%
BRENT CRUDE $82.01 -0.95%
MURBAN CRUDE $82.26 -0.63%
NATURAL GAS $1.948 +1.67%
LOUISIANA LIGHT $82.27 -1.18%
BONNY LIGHT $86.32 -1.01%
OPEC BASKET $83.38 +0.88%
MARS US $78.07 -2.07%
GASOLINE $2.534 -1.99%
The WTI rose 9.2% this year, supported by strong physical markets as global shipping companies avoided the Red Sea, as well as efforts by OPEC+ to limit supply. On the other hand, this optimism was tempered by strong production from outside the organization and fragile expectations on demand in China, and the likelihood that central banks will begin easing monetary policy later than previously expected.
Meanwhile, China set its annual growth target at nearly 5%, raising expectations that officials will launch more stimulus as they try to boost confidence in the slowing economy. The country has also set a more ambitious goal of reducing the energy needed for economic expansion, or energy intensity, this year.
Oil prices:
The price of West Texas Intermediate crude for April delivery fell 59 cents to $78.15 a barrel in New York.
The price of Brent crude for May settlement fell 76 cents to settle at $82.04 per barrel.
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