Whats driving Oil
WTI crude futures fell below the $77 per barrel mark, halting a rally that saw the US benchmark climb nearly 9% in the last three sessions, as disappointing Chinese factory data piled onto demand concerns. Pressuring prices further were worries about a looming recession in the US, with a hawkish Federal Reserve signaling that interest rates will go higher for longer. Still, growing optimism for a recovery in demand and tight supplies have offered investors some respite. The International Energy Agency offered a somewhat bullish outlook for markets next year, citing the reopening of the Chinese economy and a less aggressive tightening from major central banks as crucial drivers for growth and fuel demand. On the supply side, OPEC+ decided to stick to their existing policy of reducing oil output by 2 million barrels a day from November through 2023.