Oil rebounds from tumble as traders focus on demand outlook

Oil rose after the biggest one-day drop this year as traders focused on the still-positive demand outlook and appetite for risk rebounded.

West Texas Intermediate climbed toward $84 a barrel after shedding more than 2% on Monday, when U.S. equities swooned then recovered. The volatile trading comes as the Federal Reserve prepares the ground for interest-rate increases, and Russian troops mass on the border with Ukraine. In recent months, oil bears have retreated as speculators turn more bullish amid lower stockpiles.

Crude rallied to a seven-year high last week as worldwide consumption recovered from the impact of the pandemic, eroding inventories. U.S. oilfield services giant Halliburton Co. said it expected the environment to remain supportive as it reported a jump in profit and higher dividend on Monday.