Oil Edges Higher After Four-Day Retreat as Traders Look to China

Customs officers raise the national flag during a rehearsal along the Bund in front of the Lujiazui Financial District in Shanghai on Jan. 4. Photo: Bloomberg

(Bloomberg) — Oil rose after a four-day drop as investors weighed the impact of China’s moves to ease virus curbs against a looming U.S. slowdown.

West Texas Intermediate climbed toward $73 a barrel after plunging more than 11% over the previous four sessions as a raft of U.S. banks sounded the alarm on a possible recession. Among the latest, Citigroup Inc. Chief Executive Officer Jane Fraser flagged countries including the U.S. rolling into recessionary environments. Those concerns have largely eclipsed positive signals from China, which is rolling back Covid-19 curbs in a boost for energy consumption.