Singapore (dpa)
Crude oil futures prices rallied significantly at the start of the new trading week on Monday amid investor optimism about a recovery in Chinese demand for oil and prospects for an easing of monetary policy tightening in the United States.
The Bloomberg news agency reported that the price of West Texas Intermediate crude, which is the benchmark for oil, rose by about $75 a barrel, after declining 8% over the past week.
This comes as an official from the People’s Bank of China (Central) said China’s economic growth would immediately get back on track as the government plans to provide more financial support to households and businesses in China.
At the same time, the US Federal Reserve (Central Bank) is expected to reduce the pace of interest rate hikes in the coming months, as the pace of wage growth in the US slows.
This scenario means a decline in the value of the dollar against other currencies, which increases the demand for commodities and commodities in global markets.
The price of West Texas Intermediate crude rose 1.4% to $74.80 a barrel for next February delivery, while Brent crude, the global oil benchmark, rose 1.4% to 79 $.64 a barrel for next March delivery.
