Oil fell as investors fretted that China’s plans to support the economy lacked follow-through, with crude tracking other materials lower.
West Texas Intermediate fell below $71 a barrel after climbing by more than 2% last week as China cut interest rates and hinted that further, robust support would be delivered. Still, a key State Council meeting in Beijing on Friday ended with little detail on a new package in the world’s largest crude importer.
Crude-trading volumes, especially for WTI, may be lower than usual on Monday as the US marks the Juneteenth holiday. With some trading desks thinned out, the US crude benchmark’s prompt spread remains firmly in contango, a bearish pricing pattern that indicates ample near-term supply.
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