Oil Futures Rise on Bets China Will Boost Economy - report
Oil rose to the highest in a week as investors speculated that China's government will boost stimulus measures and as the U.S. tightened sanctions on Iran, Bloomberg reported.
It said crude futures rose as much as 1.4% in New York after closing 0.3% higher yesterday. China's economy grew at a less-than-estimated 7.6% in the second quarter, data from the National Bureau of Statistics showed. Oil in New York closed at a one-week high yesterday after the U.S. announced additional sanctions on Iran.
Crude for August delivery added as much as US$1.20 to US$87.28 a barrel on the New York Mercantile Exchange, the highest since July 5, and was at US$87.03 at 1 p.m. London time. Prices are up 3.1% this week and 12% lower this year.
Brent oil for August settlement on the London-based ICE Futures Europe exchange traded at US$102.08 a barrel, up US$1.01, after rising to a five-week high of US$102.58 earlier today. The European benchmark crude's premium to the New York-traded West Texas Intermediate grade was at US$15.05. The spread was US$14.99 yesterday, the widest in a month based on closing prices.
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