Oil ascended to 3-month highs on squeezed supply, stimulus expectations in China
International benchmarks for crude oil edged up by about 2% on Monday, 24 July 2023 to nearly a three-month high fueled by a congruent of factors such as narrowing supply, leveraged US gasoline demand
International benchmarks for crude oil edged up by about 2% on Monday, 24 July 2023 to nearly a three-month high fueled by a congruent of factors such as narrowing supply, leveraged US gasoline demand and heightened optimism on stimulus intervention by the Chinese government.
Both benchmarks rose for four consecutive weeks with crude expected to remain scarce as OPEC+ continues to reduce supplies. In the US, strong demand and concerns regarding supply have boosted US gasoline futures to highs last seen in October 2022.
Meanwhile, in China, government leaders vowed to intensify policy support for the economy due to the tumultuous post-pandemic recovery, targeting primarily on the strengthening of local demand.
Brent crude went up by $1.67 or 2.1% at $82.74/barrel.
US West Texas Intermediate climbed $1.67 or 2.1% as well, now nesting at $78.74/barrel.