By Scott DiSavino
NEW YORK (Reuters) -Oil prices slid about 1% on Monday as strong U.S. economic data had investors bracing for more interest rate hikes from the U.S. Federal Reserve to fight inflation which could also cut oil demand.
Losses were limited by oil supply concerns after Russia halted exports to Poland via a key pipeline.
Brent futures fell 56 cents, or 0.7%, to $82.60 a barrel by 11:18 a.m. EST (1618 GMT). U.S. West Texas Intermediate (WTI) crude fell 44 cents, or 0.6%, to $75.88.
New orders for key U.S.-manufactured capital goods increased more than expected in January while shipments rebounded, suggesting that business spending on equipment picked up at the start of the first quarter.
That positive economic data helped global stock markets to rebound, yet shares remained near six-week lows as investors braced for interest rate hikes in the United States and Europe.
Fed hikes rate again by 75 basis points, hints at entering end phase
Oil falls close to 2022 lows on economic worries, easing supply fears
Copper prices weaken on worries over China and global slowdown
Oil prices fall on worries of US rate hikes, China demand outlook
Wall St drops amid inflation, rate hike worries; megacap growth stocks fall
Ukraine war, a year on: Equity markets see negative second-order impact
UK overtakes India as world's 6th-biggest stock market with $3.11 trn mcap
Oil prices falls more than 1% as growth fears offset China demand hopes
European shares struggle, bond yields jump after bright economic data
Brent oil falls on fears of global economic slowdown, rate hike fears
Fed Governor Philip Jefferson said inflation for services in the United States remains "stubbornly high."
Adding to global oil demand worries, rising Sino-U.S. tensions hammered equity markets in China and Hong Kong while investors awaited policy signals from the upcoming National People's Congress.
On Sunday, White House National Security Adviser Jake Sullivan said China has not moved toward providing Russia with lethal aid for use against Ukraine and added Washington has made clear behind closed doors that such a move would have serious consequences.
Russia halted supplies of oil to Poland via the Druzhba pipeline, Polish refiner PKN Orlen said on Saturday, a day after Poland said it had delivered its first Leopard tanks to Ukraine.
On Monday, Russian oil pipeline monopoly Transneft said it started pumping oil from Kazakhstan to Germany via Poland through the Druzhba pipeline, while halting deliveries to Poland.
Russia announced plans this month to cut oil exports from its western ports by up to 25% in March versus February, exceeding its previously mooted production cuts of 5%.
Still, most analysts see a European Union (EU) ban on Russian seaborne oil imports and an international price cap having only a small impact on overall global supply.
"Russian oil output has exceeded expectations in recent months due to lax EU/US sanctions," Bank of America said in a note.
(Additional reporting by Noah Browning in London, Mohi Narayan in New Delhi and Sudarshan Varadhan in Singapore; editing by Kirsten Donovan, Jason Neely, Susan Fenton and David Gregorio)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)