In This Article:
(Bloomberg) -- Oil fell after a key technical level provided resistance to a rally that has been driven by continued signs of tightening US crude supplies.
Most Read from Bloomberg
-
NYC’s Subway Violence Deters Drive to Bring Workers Back to Office
-
NYC Condo Owners May Bear Costs of Landmark Green Building Law
West Texas Intermediate futures reversed course, dipping below $74 a barrel after earlier rallying close to their 200-day moving average of about $75.48. The technical level has served as a ceiling for prices since October.
On the fundamental side, government data released Wednesday showed US crude stockpiles fell 959,000 barrels last week, the seventh straight drawdown and the longest streak of declines in three years. Traders are also bracing for frigid weather in the US, which has boosted demand for heating fuel and raised the risk of freeze-offs in production areas.
Oil has had a strong start to 2025, with prices breaking out of a monthslong range, but many analysts continue to warn of a glut this year. The market is also bracing for Donald Trump’s second presidential term, with threats of tougher sanctions on Iran and tariffs on China.
In another sign of tightening supply, Russian data show that the country’s oil production was below its OPEC+ output target last month, after seaborne exports slumped to the lowest level since August 2023. Meanwhile, ports in the eastern Chinese province of Shandong, the top destination for Iranian crude, were urged to prevent US-sanctioned tankers from docking at their berths.
To get Bloomberg’s Energy Daily newsletter in your inbox, click here.
Most Read from Bloomberg Businessweek
-
The US Government Is Sitting on a Possible Solution to the Housing Crisis
-
Luxury Brands Need to Get Over Their Youth Fixation to Offset Drag From Trump’s Tariffs
-
The US’s Worst Fears of Chinese Hacking Are on Display in Guam
©2025 Bloomberg L.P.