Oil hovers near 3-month high

Oil is trading near a three-month high as China moves to shore up growth. Oil traded at a three-month high as global markets showed signs of tightening, with China taking more measures to support economic growth and helping the outlook for energy demand. U.S. crude rose more than 4% in three sessions to $79 a barrel. Top leaders in China, the largest importer of crude, have signaled more support for housing as well as pledges to boost consumption, although they have refrained from major fiscal or monetary easing. Oil rose in the early weeks of the second half after the Organization of the Petroleum Exporting Countries and its allies reduced supply to help drain global inventories. That offset pressure from Fed Chair Jerome Powell’s monetary tightening campaign, and another rise is expected this week. “Most of crude’s gains this month have been driven by investors’ joy that the Fed is potentially holding off on rate hikes and guiding the U.S. economy to a soft landing,” said Vandana Hari, founder of Vanda Insights in Singapore. “If Powell disappoints, expect a pullback in risk assets as well as crude.” Both U.S. crude and global benchmark Brent closed above their 200-day moving averages for the first time in nearly a year on Monday. If sustained, that could help spur additional buying.