Oil Extends Gains as Fed Rate Outlook Offsets Weakening Demand
Oil climbed for a second session as an increase in bets the Federal Reserve will opt for a lager interest-rate cut this week aided wider market sentiment and offset signs of flagging demand.
West Texas Intermediate traded above $70 a barrel after rising 2.1% on Monday, with Brent closing near $73. Opinion remains divided on the US central bank's easing path, but some are wagering it will kick off the cycle with a half-point cut.
Crude has fallen around 14% this quarter, as concerns over a slowdown in top importer China and increased supply from OPEC+ worsen the outlook. In Europe, major oil refineries are cutting how much crude they process at their plants, a further sign of lackluster demand.
Source : Bloomberg
