Oil rose as traders took stock of China’s efforts to accelerate its economy and glimmers of strengthening demand from Asian buyers.
Prices reversed early losses and stayed higher after China’s Vice Premier was reported to have said that the economy is in good shape. Brent futures subsequently ticked above their 50-day moving average for the first time since late April, providing fresh support to prices.
“WTI crude prices are finally stabilizing above the $70 level as energy traders anticipate the start of summer should keep demand steady over the next few months,” said Ed Moya, senior market analyst at Oanda Corporation.
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