After moving sharply higher in early trading, the price of crude oil showed a notable downturn over the course of the trading day on Thursday.
Crude for January delivery slid $0.55 or 0.8 percent to $71.46 a barrel after surging to a high of $75.44 a barrel early in the session.
With the downturn on the day, the price of crude oil extended a recent sell-off, falling to its lowest levels in eleven months.
Crude oil initially benefited from easing Chinese Covid restrictions well as news the Keystone Pipeline was shut down after an oil leak in Nebraska.
Buying interest waned over the course of the session, however, as traders remain concerns about the outlook for energy demand amid the possibility of a global recession.
“The initial spike following the Keystone Pipeline leak news was short-lived but with prices so close to the $70 level, we might not see much more weakness,” said Edward Moya, senior market analyst at OANDA.
He added, “The $70 level remains key for oil as that is where the Biden administration is expected to start to consider refilling the strategic petroleum reserve.”