Oil steadies near lowest level since January

Since January, oil held near the lowest level since January, as recessionary concerns, tighter monetary policy and a rally in the dollar dimmed the outlook for energy demand and hindered appetite for risk assets.

West Texas Intermediate was above $77 a barrel after sinking more than 8% over the previous two sessions. After rising for five days, a Bloomberg gauge of the US currency was close to a new record, making commodities like crude and copper more expensive for most buyers.

There was a parade of Federal Reserve policy makers who signaled that more rate rises were in store, with the need to tame inflation at the cost of a slowdown. According to Fed Bank of Cleveland President Loretta Mester, officials will need to keep restrictive policy in place for longer.

In more than two years, the US oil benchmark is on track for its first quarterly loss on the basis of concern that energy consumption will fall even as Russia s war in Ukraine drags on. The Organization of Petroleum Exporting Countries and allies may consider paring supply to stem the rout, as a result of the slump.

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