Oil Pares Losses as Russian Crude Growth Counters China Stimulus

Oil pared earlier gains as traders weighed additional Russian supplies against further Chinese economic stimulus, with thin summer volumes exacerbating swings.

West Texas Intermediate traded near $80 a barrel. Russia’s seaborne crude flows soared to an eight-week high, countering a move by China’s largest banks to cut interest rates. Still, physical markets show signs of tightness. WTI’s prompt-spread is trading 43 cents in backwardation. Stockpiles at the key storage hub of Cushing, Oklahoma, have declined to the lowest level since January. And refined products are also trading at giant premiums to crude as the US tropical storm season picks up.

Source: Bloomberg