NEW YORK: Oil prices rose to fresh three-month highs on Tuesday, as signs of tighter supplies and pledges by Chinese authorities to shore up the world’s second-biggest economy lifted sentiment.
Brent futures gained 31 cents at $83.05 a barrel by 11:03 a.m. EDT, after hitting $83.30 earlier, the highest since April 19.
US West Texas Intermediate (WTI) crude rose 35 cents at $79.09. The contract earlier rose to $79.34 a barrel, the highest since April 19.
The crude benchmarks have already clinched four weekly gains in a row, with supplies expected to tighten due to output cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allies.
Earlier-loading Brent contracts are selling above later loadings, a price structure known as backwardation indicating traders see tight supply, with the six-month spread near a two-and-a-half month high.
“The market is getting more concerned about the trend of tightening oil supplies, and it’s becoming more obvious to the naysayers that the expected drop-off in demand isn’t happening,” Price Futures Group analyst Phil Flynn said.
In China, the world’s second-biggest oil consumer, leaders pledged to step up economic policy support.
But still, some economic data limited gains. In the euro zone, business activity shrank more than expected in July, a survey showed.
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