Refinery Outage and Tighter Supplies Propel Oil to Three-Month Peak

Refinery Outage and Tighter Supplies Propel Oil to Three-Month Peak


(Bloomberg) –‍ Oil rose to a three-month high, closing above a key technical barrier, as signs of a ‍tighter ​crude market outweighed the prospect of another hike from ⁣the Federal Reserve.

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West Texas ​Intermediate settled above $78 a barrel as OPEC+ cuts begin to materialize, tightening global supplies. Adding to the ‌intraday rally was an outage at Exxon’s Baton Rouge refinery, where a ​gasoline-making catalytic cracker may be down ‍for ‌several weeks. The disruption during ⁣the high-demand⁢ summer driving ​season also boosted the 3-2-1 crack — a measure ⁤of the profitability ‌of turning crude into fuel — to⁤ the highest⁢ since March.

US benchmark crude closed⁢ above its 200-day moving average, which has provided strong resistance since August. Oil holding above that threshold could spur additional‌ buying. Risk-on sentiment in equity markets, ‌which are ​trading near the highest levels this year, also⁣ is bolstering crude.

Crude is still down slightly⁣ for the year,…

2023-07-24 15:19:40
Original from finance.yahoo.com
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