Oil Resumes Rally as Stockpiles Seen Lower, China Eyes Tax Cuts
- Chinese officials promise stimulus, buoying outlook for demand
- Industry said to report dip in crude supply, buildup for fuels
Pump Jacks extract crude oil from oil wells in Midland, Texas, U.S.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
Oil climbed as investors anticipated another decline in U.S. crude inventories and China promised to slash taxes to avert an economic slowdown.
Futures in New York rose 3.2 percent after sinking during the past two sessions. American stockpiles probably fell for the sixth time in seven weeks, according to a Bloomberg survey of analysts before government data due Wednesday. After trading closed, an industry report offered a more tepid view on demand, with big increases in U.S. gasoline and diesel inventories.