Oil held on to recent gains in light trade, helped by tighter supplies and optimism that China’s government will boost the country’s economy.
West Texas Intermediate settled above $79 as open interest hovered around January lows, while risk-on sentiment in equity markets bolstered gains. China, the world’s biggest crude importer, signaled more support for the real estate sector on Monday along with pledges to boost consumption. Despite light trading volumes, technical patterns and fundamentals show increasing signs of market tightness.
U.S. benchmark West Texas Intermediate and Brent closed above their 200-day moving averages for the first time in nearly a year on Monday, and both returned above that level on Tuesday. Staying above this barrier for an extended period can help spur further buying as it suggests a healthier technical context. Meanwhile, the WTI fast spread is back at 43 cents a barrel, the highest since November, indicating that physical markets are still dry for crude.
Oil rose this month after the Organization of the Petroleum Exporting Countries and its allies cut supplies to help drain global inventories. That move offset the drag on the monetary tightening campaign by Federal Reserve Chairman Jerome Powell, who is expected to continue with another rate hike this week.
Gasoline is also in the spotlight after Exxon Mobil Corp. shut down a unit at one of the largest US refineries, sending US futures to their highest level since October.
Prices:
- WTI for September delivery rose 89 cents to settle at $79.63 in New York.
- Brent for September settlement rose 90 cents to settle at $83.64 a barrel.
1 Comment
https://www.jilcat.com carries a line of products that lower gas consumption in all vehicle types, but more importantly, they are ecofriendly and extend the life of your transmission and engine. The protection against friction is by far the best on the market, but the value of its ads protecting the metals against sludge is a game changer.