Oil rose marginally with equities as traders waited for the next set of clues on the outlook for crude demand in the US and China.
(Bloomberg) — Oil rose marginally with equities as traders waited for the next set of clues on the outlook for crude demand in the US and China.
West Texas Intermediate traded above $80 a barrel after gaining 1.5% over the past three days, the longest run of gains since late July. In broader markets, stocks climbed, adding a tailwind to crude, and China’s banks are weighing further rate cuts to boost growth.
The country’s biggest refiner, Sinopec, said that the nation’s product demand in the second half would expand at a slower pace than in the first. In the US, meanwhile, there are expectations that the Federal Reserve isn’t yet done with its campaign of monetary tightening to quell too-hot inflation.
After pulling back from a multi-month high, crude has traded around $80 a barrel in recent weeks. OPEC+ producers are continuing to withhold supply from the market, while refined products are also trading at giant premiums to crude as the US tropical storm season picks up.
“The oil market remains rangebound with underlying support stemming from continued tightness across fuel products,” said Ole Hansen, head of commodities strategy at Saxo Bank. “A strong Asian session is supporting sentiment today, but overall the market is in no hurry to go anywhere in the short term.”
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