Brent loses 1% on demand concerns

Brent crude slid nearly 1% in European trade, resuming losses after a two-day attempt to recover from two-week lows, amid renewed concerns about  fuel demand in the short term.

Concerns are focused on the US in particular with expectations the Fed will carry on its rate hikes for a longer duration this year. 

Brent

Brent fell 1% to $82.09 a barrel, with a session-high at $83.21, after rising 0.75% on Friday, the second profit in a row away from two-week lows at $80.27. 

Brent shed 0.25% last week, the second weekly loss in a row on concerns about US oversupply. 

Global Demand

Analysts expect prices to drop more amid weaker demand on crude worldwide, and especially in the US as the Federal Reserve continues to tighten its policies.

US Supplies

Recent EIA official data showed US crude stocks rose for the ninth week in a row to May 2021 highs in a negative sign for demand in the US.

US output pumped 12.3 million bpd last week, the highest since April 2020, with the EIA expecting record output in March from the largest 7 shale oil basins in the country.

Will Brent Relinquish $80 a barrel?

It's very possible for Brent to slide below $80 a barrel if traders continued to shun riskier assets and if the dollar and US treasury yields kept on their march north.