Oil rose for a third day after China announced measures to boost its stock and property markets, helping offset concerns about increased supply and monetary tightening in the US and Europe.
West Texas Intermediate traded above $80 a barrel after closing up 1% on Friday. The US benchmark fell over the previous two weeks on speculation the US could ease sanctions on Iran and Venezuela, boosting supply, and a deteriorating demand outlook in China, the biggest importer.
The three-day rally comes after a string of declines that has left futures trading near where they started the year, despite the efforts of OPEC+ producers Russia and Saudi Arabia to shore up prices by curbing supply. The world’s top central bankers, meanwhile, stressed the need to keep interest rates high until inflation is contained, at last week’s event at Jackson Hole.
In a further sign of bearishness, net long positions for both WTI and global benchmark Brent declined in the week through Aug. 22, the latest data showed.
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