An oil pump jack at the New Harmony Oil Field in Grayville, Illinois. Oil prices have fallen further as signs emerge that tightened supply is easing. Photograph: Luke Sharrett/BloombergOil fell further from the lowest close in more than five months as traders counted down to an Opec+ meeting on production policy and tracked signs that physical crude markets have become less tight in recent weeks.
In Asia, investors were monitoring a sharp rise in US-China tensions spurred by an expected visit of House Speaker Nancy Pelosi to Taiwan. The standoff has blunted appetite for risk assets, with stocks and most commodities lower. “The narrative for oil prices continue to revolve around market pricing for growth risks, said Yeap Jun Rong, market strategist at IG Asia Pte. There are expectations of moderating demand, which could translate to a narrowing backwardation, he said, referring to the pattern where near-term prices command a premium to longer-dated ones.