Oil rose alongside equities as thin summer trading left the commodity to follow broader markets.
(Bloomberg) — Oil rose alongside equities as thin summer trading left the commodity to follow broader markets.
Aggregate trading volumes of West Texas Intermediate crude were about 40% lower than usual. Risk-on sentiment across markets led oil higher, even as a mixed demand outlook and the prospect of more supply from Iran and Venezuela sapped investor conviction.
Oil’s rally has faltered in recent weeks as the deteriorating demand outlook in China, the world’s biggest oil importer, remains a lingering concern for traders. This comes despite efforts by OPEC+, the producers’ group led by Saudi Arabia and Russia, to shore up prices by curbing supply. At the same time, US talks with Iran and Venezuela has fueled speculation that both nations will boost crude exports.
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