Oil rose for the first time in seven days in New York after China pledged to boost the nation’s economy and Goldman Sachs Group Inc. said the balance between supply and demand of crude is tightening.
Futures gained as much as 0.8 percent after settling at the lowest level in almost seven months on May 18. The extent of oil’s decline was unwarranted, Goldman said in a report. China will focus more on bolstering economic growth, the official Xinhua News Agency reported yesterday, citing Premier Wen Jiabao. Crude’s relative strength index remained below 30, signaling it may be oversold.
Crude for June delivery rose as much as 72 cents to $92.20 a barrel in electronic trading on the New York Mercantile Exchange and was at $92.12 at 9:27 a.m. London time. It fell 1.2 percent on May 18 to $91.48, the lowest close since Oct. 26 and expires today. The more-actively traded July contract climbed 57 cents to $92.37. Prices are 7 percent lower this year.
Brent oil for July settlement rose 90 cents, or 0.8 percent, to $108.04 a barrel on the London-based ICE Futures Europe exchange. The front-month price for the European benchmark contract was at a premium to West Texas Intermediate of $15.68.