LONDON, Mar 5 (Reuters): Oil slipped for a second day on Tuesday as concern over China's plan for growth and uncertainty over the pace of US interest rate cuts offset the prospect of a tighter market due to continued OPEC+ supply restraint.
Brent crude was down 46 cents, or roughly 0.6 per cent, to $82.34 a barrel at 1423 GMT, while US West Texas Intermediate (WTI) was down 44 cents, also about 0.6 per cent, to $78.3. Both benchmarks fell by more than $1 a barrel earlier in the session.
China, the world's biggest oil consumer, set an economic growth target for 2024 of around 5 per cent, similar to last year's goal and in line with analysts' expectations, but the lack of big ticket stimulus plans to prop up its struggling economy disappointed investors.
The US Federal Reserve is under no urgent pressure to cut interest rates given a "prospering" economy and job market, Atlanta Fed President Raphael Bostic was reported on Monday as saying.
"Public enemy No 1 of a protracted rally and the $90 oil price is the uncertainty surrounding interest rate cuts," said Tamas Varga of oil broker PVM, adding that concern over China's growth target was adding downward pressure.
Some support came from the prospect of a tighter market after members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday extended their voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter.
"The market has been moving higher in recent weeks amid improving fundamentals. Rising spot prices indicate the physical market has begun to tighten amid a host of other supply-side disruptions," ANZ analysts said in a note on Monday.
Still, the latest round of U.S. inventory reports are expected to show crude stocks increased about 2.6 million barrels last week, while distillates and gasoline stockpiles are forecast to decline.
Oil slips as China reforms underwhelm
FE Team | Published: March 05, 2024 23:43:15
Oil slips as China reforms underwhelm
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