Oil Edges Higher as Strong Fuel Market Outweighs Recession Fears
- Vitol says prices are unlikely to drop as China demand climbs
- Exxon Mobil CEO says supplies may be tight for half a decade
This article is for subscribers only.
Oil climbed as financial markets recovered from last week’s rout, with traders confident that tight supplies will sustain higher prices even if the global economy contracts.
West Texas Intermediate August delivery rose to settle above $109 a barrel after plummeting before the US holiday weekend. Top trader Vitol Group said Chinese demand is recovering in a market that’s struggling to increase supplies, meaning prices are unlikely to drop. Under mounting political pressure to ease the strain on consumers, US President Joe Biden said he’s aiming to decide this week whether to suspend the federal gasoline tax.