As investors awaited statistics from China to assess demand at the top crude oil importer in the world, oil prices increased in light trading during the early Asian hours of Monday.
Following a 6.4% decline the previous week, Brent crude futures increased 85 cents, or 0.9%, to $92.48 per barrel by 00:19 GMT. After falling 7.6% last week, US West Texas Intermediate crude was up 73 cents, or 0.9%, at $86.34 per barrel.
Oil gained support from a number of factors, including Chinese President Xi Jinping’s remarks at the Party Congress, which reaffirmed accommodating measures for the economy and were seen as a positive indicator for the demand outlook, according to CMC Markets analyst Tina Teng.
Since the US dollar index futures were down today, the oil markets also had a chance to recover,” she continued. Oil becomes more affordable for owners of foreign currencies as the dollar declines.
This week, trade and economic data from China are anticipated. The world’s No. 2 economy is likely in for its worst year since almost half a century due to Xi’s strict COVID-19 policy, despite the possibility that its third-quarter GDP growth may improve from the previous quarter.
Looking ahead, it is anticipated that oil prices will remain volatile since OPEC+ production cuts will reduce supply before the European Union imposes a ban on Russian oil, but a strong US dollar and any US Federal Reserve interest rate increases will cap price increases.
