Oil Climbs After Plunging Monday on Trump’s Criticism of Powell

(Bloomberg) -- Oil edged higher after tumbling on Monday following President Donald Trump’s escalating criticism of Federal Reserve Chair Jerome Powell, which rattled global markets.

Brent rose to near $67 a barrel after sliding 2.5% in the previous session, the most in more than a week, while West Texas Intermediate traded below $64. Trump warned that the US economy may slow if the central bank does not move to reduce interest rates, his latest broadside against Powell.

The president has contemplated firing the Fed chair, prompting investors to sell US stocks, bonds and the dollar on Monday. Oil was swept up in the chaos, extending a slump this month that’s been exacerbated by concerns over escalating tensions between the US and its top trading partners.

“It’s hard to see a bullish factor on the horizon for crude,” said Vandana Hari, the founder of Vanda Insights in Singapore. Investors will be focused on any commentary around trade from meetings of the World Bank and International Monetary Fund this week, which may influence market sentiment, she added.

The return of idled crude production by OPEC+ this month has stoked fears of oversupply and added to the pressure on prices. Parts of the futures curve for Brent recently dipped into contango — a bearish structure that signals ample supply. 

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