ING's outlook is in contrast to bullish views from Royal Bank of Canada and Goldman Sachs Group Inc.to BMI Research and Societe Generale SA, which see prices supported as strong demand soaks up supply from the U.S. While Patterson does see healthy oil consumption, he said growth may slow and fail to completely absorb gaining American output. Some of that early slide was probably profit-taking after a rise on Friday, said Jim Ritterbusch, president of energy advisory firm Ritterbusch & Associates.
Healthy demand and ongoing supply restraint by a group or producers led by the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation, however, have so far prevented further price falls.
Investor concerns about rising U. S.
While there's renewed confidence over demand on a brighter economic outlook following a better-than-expected jobs report in the United States, expanding American production continues to remain a challenge to the Organisation of Petroleum Exporting Countries and its allies including Russian Federation that are trying to prop up prices via output curbs.
Brent crude, which is the global benchmark of crude oil, had opened 2018 at $64.73. That is not far off the 2.957 percent yield on February 21, the highest since the instrument yielded more than 3 percent in January 2014. The U.S. now has close to 800 active rigs, compared to just 616 a year ago. Prices could trade sideways if the dollar strengthens along with stocks.
Philip Hammond upbeat on growth and spending in spring statement
Hammond said the Treasury will launch a call for evidence to examine options on reducing single-use plastics, including taxes. Still, the forecasts for 2019 and 2020 were left unchanged at 1.3 percent, while 2021's was cut to 1.4 percent.
MSCI's world equity index hit a two-week high, while Hong Kong's Hang Seng Index closed up 1.93 percent. The Dow Jones Industrial Average . fell 157.13 points, or 0.62 percent, to 25,178.61, the S&P 500 . lost 3.55 points, or 0.13 percent, to 2,783.02 and the Nasdaq Composite . added 27.52 points, or 0.36 percent, to 7,588.33.
Wall Street's main indexes closed up almost 2 percent on Friday on the strength of the jobs report, and have almost reversed declines in recent weeks when investors feared that higher wages might lead to price pressures.
Emerging market stocks rose 1.29 percent. Some of the pressure is coming from a recovery in the U.S. Dollar, which could affect foreign demand. DXY fell 0.21 percent, with the euro up 0.27 percent to $1.2338.