Crude oil prices rose on Monday, supported by strong factory activity in the world’s second largest oil consumer, China, and the escalation of tensions in the Middle East, where Israel resumed attacks on Lebanon despite a ceasefire agreement.
At 1002 GMT, Brent futures gained US$0.75 cents, or 1.04%, to US$72.59 a barrel, and West Texas Intermediate in the United States (WTI) advanced US$0.70 cents, or 1.03%, to US$68.70.
“Better-than-expected Chinese economic data is supporting crude oil prices, which were suffering even from concerns about Chinese demand,” said UBS analyst Giovanni Staunovo.
Stimulus measures are finally beginning to have an impact on economic activity, and that should help Chinese oil demand in the coming months, he added.
A private sector survey showed Chinese factory activity expanded in November at the fastest pace in five months.increasing the optimism of Chinese companies just when the president-elect of the United States, Donald Trumpintensifies its commercial threats.
However, traders are keeping an eye on developments in Syria.weighing whether they could widen tensions across the Middle East, said IG’s Yeap Jun Rong.
Last week, both benchmarks fell more than 3% as supply concerns eased due to the conflict between Israel and Hezbollah. and surplus forecasts for 2025, despite the fact that sustained production cuts were expected.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, postponed its meeting to December 5 and is debating delaying the increase in oil production scheduled for Januarygroup sources told Reuters last week. This week’s meeting will decide policy for the first months of 2025.
