Oil is poised for a fourth monthly advance but prices are firmly anchored near $43 a barrel and struggling to push further as nations across the globe battle to contain the virus. The market is also contending with more supply from OPEC+ after the group started easing its historic output cuts, while signs emerged that Chinese crude purchases are starting to slow. Futures added 0.8% in New York amid a broader rally in equities, snapping a two-day decline. Chinese economic activity continued to rebound in August as the world’s second-largest economy emerges from the virus slump. Meanwhile, U.S. Gulf Coast refineries started the recovery process after Hurricane Laura passed, with facilities in southeast Texas avoided the worst of the storm.
Oil still looks positive, but it’s going to grind higher rather than race because there’s a still concern regarding the consumption side of the equation. Laura was one of the most powerful hurricanes to ever hit Louisiana and U.S. Gulf Coast refiners halted around a third of gasoline and diesel production as the storm approached, but the market impact was relatively muted. Futures in New York started the week at $42.48 a barrel and ended it close to $43.