Oil headed for a third weekly drop, its longest losing run this year, on concern that a potential recession will cut into energy demand.
Oil fell about 8% in June as investors fretted over a potential global slowdown, eroding a rally spurred by the war in Ukraine, interruptions to supplies and rising demand. The jump in prices alarmed President Joe Biden, who’s spearheading efforts to get“Oil may remain choppy,” said Zhou Mi, an analyst at Chaos Research Institute in Shanghai, which is affiliated with Chaos Ternary Futures Co.
Oil’s time spreads, which traders track for indications on the strength of underlying demand, continue to flash broadly positive signals. Brent’s prompt spread – the difference between its two nearest contracts – was $3.42 a barrel in backwardation, up from $2.73 a month ago.