(Bloomberg) — Oil posted its biggest daily rise since October, as supply disruptions from Turkey calmed concerns about a banking crisis.
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West Texas Intermediate futures traded near $73 a barrel after jumping more than 5% on Monday. A legal dispute between Iraq, the semi-autonomous Kurdistan Region and Turkey has halted some 400,000 barrels per day of exports from the port of Ceyhan, narrowing the market. This coincided with optimism that the worst of the recent banking turmoil may be over.
Oil is still on track for a fifth monthly decline as concerns about a potential US recession and resilient Russian energy flows weighed on prices. Most market watchers are still betting that China’s recovery will accelerate and boost prices later this year, with one of China’s top producers forecasting an increase in demand.
Investors will be watching comments from several Federal Reserve officials and a key measure of US inflation this week for clues on the way forward for monetary policy. Increasing interest rates added to the bearish sentiment.
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