Crude oil futures ended lower on Thursday, after three successive days of gains, as rising crude inventories in the U.S., and prospects of more interest rate hikes by the Federal Reserve weighed on oil prices.
Expectations of higher oil demand from China helped limit oil's downside.
Rating agency Fitch has revised its forecast for China's economic growth in 2023 to 5% from 4.1% previously, saying that broader economic activity is recovering faster than initially anticipated after lifting of COVID-19 restrictions.
West Texas Intermediate Crude oil futures for March ended lower by $0.41 or about 0.5% at $78.06 a barrel.
Brent crude futures were down $0.90 or 1.06% at $84.19 a barrel.
Edward Moya, Senior Market Analyst at OANDA says "crude prices are getting dragged down as the Treasury yield curve inversion new extreme suggests a broad-based slowdown is coming."
Moya says central banks will need to still deliver more tightening that what markets are pricing in.
WTI crude looks like it might be stuck below the $80 level until we have a clearer picture of China's crude demand outlook, according to Moya.
