Oil hit a two-week high as export disruptions and the broader bullish market pushed prices higher.
Strikes in France over pension reforms have forced the government to tap its strategic fuel reserves and Iraqi oil exports from Turkey are still halted as the standoff between Baghdad and Kurdistan continues.
Most market watchers are still betting on China’s recovery to underpin a rebound in prices later this year, and comments from two of the country’s biggest oil companies painted an optimistic outlook. PetroChina and Cnooc Ltd. they said a rebounding domestic economy can help cushion the impact of slower global growth. Although analysts warned that lagging demand for jet fuel in China bodes poorly for forecasts that crude will recover $100 this year.
West Texas Intermediate has regained half of the ground lost since early March, rising more than six dollars from 15-month lows following the collapse of Silicon Valley Bank. WTI’s turnaround has been fueled by rising confidence in the banking sector and supply disruptions, but the benchmark still remains on track for its fifth monthly decline.
Prices:
- WTI for May delivery rose $1.40 to settle at $74.37 a barrel in New York.
- Brent for May settlement rose 99 cents to $79.27 a barrel. The contract expires tomorrow.
- The most actively traded June contract rose 76 cents to $75.49 a barrel.
(with help from Natalia Kniazhevich)
