China’s Central Bank Rate Cut Boosts Crude Oil Prices by 3 Percent

Oil prices jumped more than 3 percent on Tuesday on hopes of boosting demand for fuel after China’s central bank cut its short-term lending rate for the first time in 10 months, lifting crude prices after heavy losses in the previous session.

The rate cut was aimed at supporting a stalled recovery from the pandemic in the world’s second largest economy and largest crude importer.

Brent crude futures rose $2.45, or 3.4 percent, to $74.29 a barrel at settlement, while US West Texas Intermediate crude rose $2.30, or 3.4 percent, to $69.42 a barrel.

On Monday, crude oil prices fell about 4 percent, partly due to concerns about the Chinese economy, after disappointing economic data last week.