Oil edged up alongside equities as thin summer trading left the commodity to follow broader markets.
(Bloomberg) — Oil edged up alongside equities as thin summer trading left the commodity to follow broader markets.
Aggregate open interest in West Texas Intermediate crude is down about 16% from its peak in early June. Risk-on sentiment across markets nudged oil higher, even as a mixed demand outlook and the prospect of more supply from Iran and Venezuela sapped investors’ 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. The stumble 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 have fueled speculation that both nations will boost crude exports.
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