Oil advances as traders weigh inflation trends and supply halts
BNN Bloomberg
Oil rose for the fourth session in five as traders weighed improving inflation trends and supply halts, before the release of OPEC's monthly market report.
West Texas Intermediate climbed above US$73 a barrel, after ending 1.6 per cent lower on Wednesday. U.S. inflation showed signs of moderating in April, giving the Federal Reserve room to pause its aggressive monetary tightening campaign. On Thursday, China reported a near-zero pace of price gains, potentially opening the door to more policy stimulus.
Crude supplies from Canada have been hit by a spate of wildfires across Alberta. In the Middle East, Iraq is still waiting for Turkey to restart exports through Ceyhan port amid a dispute over payments. Output cuts by the Organization of Petroleum Exporting Countries and its allies should continue to tighten supply later this year as long as demand keeps rising.
