WTI crude futures failed to hold the recent upside and bottomed around the $77 per barrel mark on Tuesday as lingering concerns about slowing global economic growth outweighed prospects of smaller global supplies and higher demand from China. Tightening financial conditions and recession worries, with central banks from the United States to Europe expected to raise interest rates next month, have clouded the outlook for fuel demand, particularly in advanced economies.
Still, investors remained optimistic about China’s crude demand recovery after bookings for trips abroad during the upcoming May Day holiday pointed to a continued increase in travel to Asian countries. On the supply side, more output cuts planned by OPEC+ from May could constrict global markets further.