Oil rises to three-month high as Saudis signal demand confidence

Oil rises to three-month high as Saudis signal demand confidence

Oil extended gains to the highest level in almost three months after Saudi Arabia signalled confidence in the demand outlook by increasing the price of its crude for Asia by more than expected.

West Texas Intermediate futures rose around 2% in early trading to just shy of $121 a barrel before paring some gains. Saudi Arabia raised its official selling prices for Asian customers in July as China — the world’s top crude importer — cautiously emerges from virus lockdowns that’s strained its economy.

Oil has rallied more than 60% this year as rebounding demand from economies recovering from the pandemic coincided with a tightening market after Russia’s invasion of Ukraine. The war has fanned inflation, driving up the cost of food to fuels and prompted aggressive monetary tightening from central banks.