© Reuters. For these reasons, crude oil prices rose during trading
Arabictrader.com – Prices witnessed slight support during trading today, Tuesday; In conjunction with the optimism about the recovery of demand by China for crude oil, which is considered one of the largest consumers of crude oil in the world, due to several measures to enhance consumption, in addition to the constant fear about the lack of supply of crude oil in the markets by the largest exporter of crude oil in the world, the Kingdom of Saudi Arabia, especially after That decided to extend oil production cuts until next year.
During today’s standard oil trading, spot crude contracts rose by 0.24% and recorded about $78.76 a barrel. At the same time, spot contracts for West Texas Intermediate crude rose by 0.51% to reach $74.46 a barrel.
Crude oil prices witnessed a slight increase, amid optimism in the markets about the possibility of recovery in demand for oil by China – the second largest consumer of crude oil in the world – after the Chinese Ministry of Commerce announced a series of measures that will be implemented with the aim of helping to boost consumption of goods and services. Within China, especially after the country’s gross domestic product slowed down to 6.3% in the second quarter of this year, which prompted the responsible Chinese authorities to take several measures to support consumption and stimulate spending on consumer goods, which reinforced the rise in crude oil prices.
Also, the growth of Chinese industrial production during the second quarter caused market optimism about expectations of growth in demand for crude oil. According to data issued by the Chinese National Bureau of Statistics, it rose in China by 4.4% on an annual basis, compared to expectations for a growth of only 2.5%. , which contributed to the rise in oil prices.
In addition, oil prices still enjoy clear support on the sidelines of today’s trading, thanks to the decision of the Kingdom of Saudi Arabia – the largest exporter of crude oil in the world – to extend the voluntary cuts that it approved earlier this year regarding oil until next December, noting that Saudi Arabia previously extended the cut. Its oil production increased by one million barrels per day for the month of August, which raised concerns about a shortage of crude oil supplies in the markets, which in turn will lead to a rise in crude oil prices.
2023-07-18 13:11:00
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