Oil extended gains on speculation that demand will get a boost from a potential rate cut by the Federal Reserve, while investors await news from the resumption of U.S.-China trade talks.
Futures advanced as much as 0.7% in New York after climbing the most in almost three weeks on Monday. Later this week, the Fed is expected to lower borrowing costs for the first time in more than a decade. Chinese and American negotiators gather for two days of talks Tuesday, while U.S. government data on Wednesday is forecast to show crude stockpiles fell for a seventh week.
Oil is still on track for its second monthly decline this year as concerns about the outlook for the global economy dent demand, countering fears crude flows from the Middle East may disrupted amid tensions with Iran. Fed Chair Jerome Powell’s post-meeting press conference Wednesday will give clues to what’s in store for the rest of the year, possibly determining the fate of many developing economies for the coming months.
West Texas Intermediate for September delivery rose 34 cents to $57.21 a barrel on the New York Mercantile Exchange as at 10:41 a.m. Singapore time. The contract gained 67 cents to close at $56.87 on Monday, climbing 1.8% over the past three sessions.
Brent for September settlement added 32 cents, or 0.5%, to $64.03 a barrel on the ICE Futures Europe Exchange. Futures gained for a third straight day on Monday. The global benchmark crude traded at a $6.81 premium to WTI.
Source : Bloomberg