WTI crude futures held below $78 per barrel on Tuesday after losing about 4% in the past two sessions, as major central banks are expected to tighten policy further this week, stoking fears of a global economic slowdown and weighing on market sentiment. Investors also fretted about robust Russian supply, with the country’s oil producers able to secure export deals despite Western sanctions and price caps on the back of strong demand from Asia.
Still, the reopening of the Chinese economy has given markets reasons to be bullish, with authorities pledging over the weekend that they would promote consumption recovery as a significant economic driver and boost imports. Latest data also showed that Chinese manufacturing and services activity rebounded sharply in January. Moreover, OPEC will likely maintain current oil production levels when they meet later this week, keeping global supplies tight.
