Oil traded near the highest level in three months as China announced another raft of measures to support its economy, aiding the outlook for energy demand just as the global market has shown signs of tightening.
West Texas Intermediate edged higher toward $79 a barrel after a three-day rally that boosted prices more than 4%. Top leaders in China, the largest crude importer, signaled more support for the real-estate sector alongside pledges to boost consumption, although they eschewed major fiscal or monetary loosening.
Both WTI and global benchmark Brent closed above their 200-day moving averages on Monday for the first time in nearly a year. If sustained, the break above that level could help to spur additional buying.
Oil has pushed higher in the opening weeks of the second half after the Organization of Petroleum Exporting Countries and its allies reduced supplies to help drain global inventories. That’s offset the drag from the Federal Reserve’s campaign of monetary tightening, with another hike expected this week.
Gasoline was also in focus after Exxon Mobil Corp. shut a unit at one of the largest US refineries. Futures are trading near their highest since October.
To get Bloomberg’s Energy Daily newsletter direct into your inbox, click here.
