Oil rallied for a fourth day, with global benchmark Brent crude on the cusp of topping $70 a barrel for the first time since November, on optimism over the global economy and as OPEC’s curbs offset signs of rising U.S. stockpiles.
Futures in London added as much as 0.7 percent after climbing 2.3 percent over the previous three sessions. Crude is being swept along by a rally in global risk assets on speculation the U.S. and China are closer to a deal that’ll resolve trade tensions between the world’s biggest economies. Meanwhile, output cutsby producers including Saudi Arabia helped counter a report that American crude stockpiles rose last week.
Brent oil futures have risen around 30 percent this year on the back of the aggressive output cuts by the Organization of the Petroleum Exporting Countries and its allies, which have been abetted by American sanctions on Iran and Venezuela. A breakthrough in the U.S.-China trade negotiations would brighten a wobbly global demand outlook.
Brent for June settlement rose 36 cents to $69.73 a barrel on the London-based ICE Futures Europe exchange as of 1:05 p.m. in Singapore after getting to $69.87 earlier. The global benchmark crude’s premium over West Texas Intermediate widened to $6.86 a barrel for the same month.
WTI for May delivery gained 24 cents, or 0.4 percent, to $62.82 a barrel on the New York Mercantile Exchange after rising as much as 32 cents earlier. WTI climbed 5.5 percent over the previous three sessions.
Source : Bloomberg