Oil rises on US reserve plan

Oil rose as the U.S. began searching for crude to fill its strategic reserves, but concerns about China’s economic recovery are growing. U.S. crude closed 1.5% higher on Monday before moving toward $72 a barrel. The Energy Department said the U.S. had solicited bids for up to 3 million barrels of crude for the Strategic Petroleum Reserve, with deliveries scheduled for August and payments to be announced in June. China’s consumer spending and industrial activity grew more slowly than expected in April, adding to signs that the post-COVID recovery was losing momentum. Warren Patterson, head of commodity strategy at ING Groep NV, said the Strategic Petroleum Reserve purchase, while relatively small, showed the U.S. appeared serious about replenishing the reserve in recent months. China’s industrial output was disappointing, but the oil figures were “very constructive,” he said.