Oil held a fourth weekly loss as concerns over the US economy and China’s slower-than-expected recovery weighed on the outlook.

West Texas Intermediate futures traded near $70 a barrel after the longest run of weekly losses since September. Negotiations are continuing to avert a US default related to the debt ceiling, with Treasury Secretary Janet Yellen warning that the department could run out of money as soon as June 1.

Oil is down 13% for the year as fears over a possible US recession outweigh supply cuts pledged by OPEC+. Demand for physical barrels also appears weak, while refinery margins — the profits that refiners make from processing crude into petroleum products like diesel and gasoline — remain low.

Hedge funds and money managers have amassed the largest short position in global benchmark Brent since July 2021, although speculators are less bearish on US crude. Investors will be watching key economic data from China this week for clues on the pace of the nation’s recovery.

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