Oil held the biggest advance in a week as risk-on sentiment in wider markets overshadowed a mixed outlook for crude.
West Texas Intermediate traded above USD80 a barrel after rising by 2.4% on Monday, while Brent closed over USD84. Equity markets are on a tear, with the S&P 500 benchmark hitting its 30th record this year, despite the Federal Reserve paring back expectations for interest-rate cuts this year. The optimism in wider markets is helping crude to move higher.
Oil has advanced this month, paring a quarterly drop, as OPEC+ agreed to extend supply cuts, with any subsequent decision to return barrels dependent on market conditions. Demand in Asia appears a touch soft, with signs of lower gasoline consumption in India, and slower Chinese refining activity. In addition, data from China on Monday saw industrial activity expanding less than expected. – Bloomberg
