Oil edged higher as traders found relief in progress made to a debt-deal that will avert a US default, and as Chinese manufacturing data beat expectations.
(Bloomberg) — Oil edged higher as traders found relief in progress made to a debt-deal that will avert a US default, and as Chinese manufacturing data beat expectations.Â
West Texas Intermediate rose above $68 a barrel after losing around 6% over the previous two sessions. Oil erased earlier losses and climbed alongside equity markets after the House passed debt-limit legislation. In China, the Caixin manufacturing purchasing managers index expanded slightly in May.
Meanwhile, the American Petroleum Institute reported US crude stockpiles swelled by 5.2 million barrels last week, which would be the biggest increase since February if confirmed by government data.
With the debt-deal progressing, traders will now be looking ahead to an OPEC+ meeting in Vienna over the weekend to discuss the group’s production policy. Resilient Russian exports are part of the reason why futures are down around 16% this year, as well as monetary tightening from the Federal Reserve.
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