“Oil prices rose amid news of new monetary stimulus measures from top importer China, as well as concerns that escalating tensions in the Middle East could affect supplies.”, — write: www.epravda.com.ua
Oil prices rose amid news of new monetary stimulus measures from top importer China, fears of escalating tensions in the Middle East and a hurricane in the US.
This is reported by the Reuters agency.
Brent crude futures for November delivery rose 69 cents, or 0.93%, to settle at $74.59 a barrel. U.S. WTI crude futures for November delivery rose 74 cents, or 1.05%, to $71.11.
Both contracts closed lower on Monday as demand concerns became top of mind for investors following disappointing data on business activity in the eurozone and lingering worries about China’s fuel consumption.
“WTI oil prices rose this morning after China cut its key lending rates. The oil market has long been waiting for more easing measures from the Chinese authorities to counter the economic slowdown,” said IG market analyst Tony Sycamore.
“Today’s announcement will somewhat reduce the risks of a further decline in oil prices,” Sycamore added.
China’s central bank has announced broad monetary stimulus and property market support to revive an economy struggling with strong deflationary pressures.
“The oil market was concerned that rising tensions in the region were pushing the OPEC producer closer to being drawn into the conflict,” ANZ bank said in a note, referring to Iran.
“Traders are also keeping an eye on the weather. The US Gulf Coast is under hurricane threat by the end of the week as an area of unstable weather in the Atlantic consolidates.”
U.S. oil companies rushed to evacuate oil rigs in the Gulf of Mexico on Monday as the second major hurricane in two weeks was forecast to barrel through offshore oil fields. Several oil companies have suspended part of their production.