U.S. oil races toward $80 target of bulls on bets market will tighten
Investing.com — The stars seem aligned for oil bulls’ wish to have a barrel priced at no less than $80.
New York-based West Texas Intermediate, or WTI, for delivery in September hit a three-month high of $79.82, extending oil’s four-week rally. At 13:00 ET (17:00 GMT), the U.S. crude benchmark was up 76 cents, or 1%, to $79.50. The U.S. crude benchmark has risen 12.5% so far for this month.
London-based Brent for September delivery surged to an April high of $83.28 before trading at around $83.06, up 58 cents, or 0.7%.
Tuesday’s rally was helped partly by the IMF’s raising of its forecast for world economic growth to 3% from 2.8%.
“The outlook for global growth is the key for the crude demand outlook and right now it seems that might only get better as we get more stimulus out of China and as soft landing hopes grow for the U.S.,” said Ed Moya, analyst at online trading platform OANDA.
China's top leaders pledged on Monday to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand, signaling more stimulus steps. Beijing will step up economic policy adjustments, focusing on expanding domestic demand, boosting confidence and preventing risks, state news agency Xinhua cited the Politburo, a top decision-making body of the ruling Communist Party, as saying.
“WTI crude will likely face key resistance from the $80 level, which means the recent rally might consolidate until we get beyond the FOMC decision,” Moya added.
Inflation, as measured by the Consumer Price Index, hit a four-decade high of 9.1% per annum in June 2022 in the aftermath of the coronavirus pandemic and the trillions of dollars of relief spending for that.
The Federal Reserve’s policy-making board,
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