Oil edged higher ahead of key economic data from China as the US started soliciting bids for crude to fill its depleted strategic reserves.
West Texas Intermediate rose toward $72 a barrel after closing 1.5% higher on Monday. China is scheduled to release figures on industrial output and retail sales for April on Tuesday, with the pace of recovery so far this year slower than some had anticipated after the nation dismantled Covid restrictions.
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Oil is 11% lower this year as a potential US recession and China’s lackluster recovery weigh on the demand outlook. Ongoing talks on the US debt limit are also unnerving markets, with Treasury Secretary Janet Yellen saying the nation is already paying a price for not yet increasing the ceiling.
The US is seeking bids for as much as 3 million barrels of sour crude for its Strategic Petroleum Reserve, with deliveries planned for August and awards to be announced in June, the US Energy Department said. The agency released more than 200 million barrels last year, in part to curb high energy prices.
The International Energy Agency is scheduled to release its monthly market report later Tuesday, providing the market with a snapshot on the demand and supply outlook. Industry data on US inventories is also expected.
