© Reuters. Crude oil tanks in Cushing, Oklahoma, in a photo from the Reuters archive.
SINGAPORE (Reuters) – Asian markets rose during early trading on Monday, falling sharply as investors waited for data from China to measure demand from the world’s largest crude oil importer.
Brent crude oil futures rose 85 cents, or 0.9 percent, to $ 92.48 a barrel by 0019 GMT, recovering from a 6.4 percent drop last week.
US West Texas Intermediate crude oil scored $ 86.34 a barrel, up 73 cents, or 0.9 percent, after falling 7.6 percent last week.
Tina Ting, analyst at CMC Markets, said oil found support from a combination of factors, including remarks by Chinese President Xi Jinping at the party conference, which confirmed the economy’s accommodative policies, which represents a positive signal for the demand outlook.
He added: “The future expectations of the US dollar index decreased today, which also provided an opportunity for recovery for the oil markets.” The falling dollar makes oil more accessible to holders of other currencies.
China is expected to release trade and economic data this week. Although China’s third-quarter GDP growth may rebound from the previous quarter, Xi’s tough COVID-19 policy has left the world’s second largest economy facing what is likely to be its worst annual performance in nearly half a century. .
On Sunday, the OPEC + group countries expressed their support for the decision to cut production approved this month, after the United States said it pushed some countries in the group to make this decision, in an escalation of a war of words with Riad.
OPEC + pledged on 5 October to cut production by two million barrels per day, which will lead to an actual drop of about one million barrels per day because some members are already producing less than the target level.
Despite this, Saudi Arabia will keep the volume of exports to the main Asian markets stable in November.
(Prepared by Ahmed Sobhi for the Arabic newsletter)
