West Texas Intermediate briefly slid below $93 a barrel, falling as much as 6.3% on Monday. Weekend data indicated a surprise contraction in Chinese, highlighting the cost of mobility curbs to tackle Covid outbreaks. Purchasing managers’ indexes also weakened in South Korea and the euro region’s four largest members.
Oil trading has been volatile in recent months as concerns about a slowdown hurt demand for commodities even as underlying signals point to a relatively tight physical market. The US economy shrank for a second quarter while the Federal Reserve hiked rates by 75 basis points.
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