West Texas Intermediate reversed earlier gains on concern demand in emerging markets may slow after a Chinese state-owned newspaper said some banks curbed loans to developers in the world’s second-biggest oil user.
WTI futures traded near their lowest closing level in a week in New York, after erasing an earlier gain of 0.5 percent. Brent futures reversed an increase of 0.4 percent in London.
Industrial Bank Co. and other unidentified lenders have curbed loans to the property sector and related industries such as steel and cement, Shanghai Securities News reported. Prices advanced earlier on forecasts that arctic air will return to the U.S. Northeast and Midwest this week, bolstering demand for heating fuel in the world’s largest oil consumer.
“Risk appetite remains limited,” said Myrto Sokou, senior analyst at Sucden Financial Ltd. London. “Investors remain cautious regarding the prospects of the emerging markets.”
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