Oil rises to US$80 as Russian supply drop offsets economy risks
BNN Bloomberg
Oil rose to trade around US$80 a barrel in London as traders weighed signs of tightening in the global crude market against a shaky economic backdrop.
Brent futures added 0.6 per cent in thin trading volumes on Wednesday. It rose the previous session as data showed that Russia's crude shipments fell to a six-month low in the four weeks to July 16. The curbs suggest that Moscow is fulfilling a pledge with its partners in the OPEC+ coalition to rein in supplies.
Oil has been buffeted over the past couple of months as investors weigh China's stuttering recovery against supply cuts by OPEC+ heavyweights Saudi Arabia and Russia, and indications that the Federal Reserve may be close to concluding a cycle of interest-rate hikes. Prices have made a decisive break higher since late June on signs that the market may finally be tightening, but are still lower for the year.
