Oil Prices Climb to Two Week High

Oil rose to its highest in two weeks as export disruptions and broader market bullishness pushed prices up.

Strikes in France over pension reforms have forced the government to tap its strategic fuel stockpiles and Iraqi oil exports from Turkey are still halted as the disagreement between Baghdad and Kurdistan grinds on.

Most market watchers are still betting on China’s recovery underpinning a price rally later this year, and comments from two of the nation’s oil majors painted an optimistic outlook. PetroChina and Cnooc Ltd. said a rebounding domestic economy can help cushion the impact of slower global growth. Analysts though cautioned that lagging jet fuel demand in China bodes ill for forecasts that crude will regain $100 this year. 

West Texas Intermediate has recovered half of the ground it lost since early March, climbing more than six dollars from 15-month lows following the collapse of Silicon Valley Bank. WTI’s turnaround has been fueled by increasing confidence in the banking sector and supply disruptions, but the benchmark still remains on track for its fifth monthly decline.

Prices:

• WTI for May delivery rose $1.40 to settle at $74.37 a barrel in New York.
• Brent for May settlement rose 99 cents to $79.27 a barrel. The contract expires tomorrow.
  • The more active June contract traded rose 76 cents to $75.49 a barrel.

(with assistance from Natalia Kniazhevich)