Oil held on to gains as a standoff between Iraq and Kurdish officials cut exports and fears of a banking collapse receded.
West Texas Intermediate advanced on Tuesday and has recovered nearly 10% since falling to a 15-month low in the immediate aftermath of the banking crisis. A legal dispute between Iraq, Kurdistan and Turkey has stopped about 400,000 barrels a day of flows, restricting global supplies.
The market dismissed concerns of a build-up of crude oil tankers along France’s coast as widespread strikes there forced most of the country’s fuel makers to halt operations. Strong Asian demand for barrels has kept prices from falling.
Although oil has rebounded from recent lows as the banking sector stabilizes, it remains on track for a fifth monthly decline amid concerns about a possible U.S. recession and resilient Russian energy flows. Most market watchers are still betting that China’s recovery will accelerate and push prices higher later this year as demand picks up.
Meanwhile, OPEC+ shows no signs of adjusting oil output when it meets next week, staying the course amid turmoil in financial markets, delegates said.
Investors will also be watching comments from several US Federal Reserve officials, as well as a key measure of US inflation expected this week, for clues about the way forward for monetary policy. Interest rate hikes have added to the bearish sentiment.
Prices:
- May WTI rose 39 cents to settle at $73.20 a barrel in New York.
- Brent for May settlement rose 53 cents to settle at $78.65 a barrel.
