(Bloomberg) Oil rose for a second session as the US started seeking crude to refill its depleted strategic reserves, although China’s economic recovery showed more signs of cooling.
West Texas Intermediate futures edged toward $72 a barrel after closing 1.5% higher on Monday. The US is seeking bids for as much as 3 million barrels of sour crude for its Strategic Petroleum Reserve, with deliveries planned for August and awards to be announced in June, the Energy Department said.
China’s consumer spending and industrial activity grew at a slower pace than expected in April, adding to signs the recovery in the world’s second-largest economy is losing momentum.
Oil is 11% lower this year as China’s lackluster recovery and a potential US recession weigh on the demand outlook. Ongoing talks on the US debt limit are also unnerving markets, with Treasury Secretary Janet Yellen saying the nation is already paying a price for not yet increasing the ceiling.
A resurgence of wildfires in Alberta prompted drillers to suspend some output, as officials warned of worsening conditions ahead. In 2016, blazes tore through the Canadian province and shut more than 1 million barrels of production.
The International Energy Agency is scheduled to release its monthly market report later Tuesday, providing the market with a snapshot on the demand and supply outlook. Industry data on US inventories is also expected.