Oil fell after four weekly gains as traders weighed prospects for another hike from the Federal Reserve against signs of a tighter market.
West Texas Intermediate dropped below $77 a barrel after closing at a three-month high Friday. That upswing was driven by expectations that supply cuts by OPEC+ would reduce inventories, with International Energy Agency Executive Director Fatih Birol saying at the weekend the market could return to a deficit.
US central bank policymakers are widely expected to deliver another rate increase at this week's meeting in their push to rein in inflation, and give guidance on the likelihood of additional moves. The tightening cycle risks tipping the world's largest economy into recession, potentially harming demand.
Oil remains lower this year despite the recent run of gains and production cuts by the Organization of Petroleum Exporting Countries and its allies including Russia. On the demand side, China's stalled recovery has been a persistent headwind for industrial commodities including crude.
US benchmark WTI neared the 200-day moving average in April but failed to manage a close above that level. Prices have again approached the figure this month, which is less than 30 cents away. A similar challenge looms for Brent.
WTI for September dropped 0.3% to $76.85 a barrel at 11:06 a.m. in Singapore.
Brent for September settlement declined 0.3% to $80.83 a barrel.
Source : Bloomberg
