After a 7% drop in a week, oil prices are on the rise again
The oil prices rose in Asian trading Monday after a drop of more than 7% last week due to concerns over demand in China, which is the world's largest oil importer. Also, there were fewer worries about possible supply disruptions in Middle East.
Brent crude futures were up 27 cents or 0.37% to $73.33 per barrel at 0625 GMT. U.S. West Texas Intermediate Crude Futures rose 31 cents or 0.45%, to $69.53 per barrel.
The gains were less than 5% the dollar value of both contracts last week. Brent settled more than 7% below last week's price, while WTI fell around 8%.
The biggest weekly drop in contracts since September 2 was due to the slowing of the Chinese economy and the falling risk premiums across the Middle East.
Saudi Aramco CEO said at an energy conference held in Singapore that he was still "fairly optimistic" about China's oil demands, given the increased policy support to boost growth and the rising demand for liquid-to chemicals and jet fuel.
China cut its benchmark lending rate on Monday morning as expected, as part of a wider package of measures to stimulate the economy.
The data released on Friday showed that China's third-quarter economic growth was the lowest since the first quarter of 2023, which has fueled growing concerns over oil demand.
Joe Biden, the U.S. president, said that there was a chance to "deal [with] Israel and Iran so as to end the conflict temporarily".
Israel announced on Sunday that it would attack financial sites linked to Hezbollah in Beirut, the capital of Lebanon.
Baker Hughes BKR.O, a leading energy services company, released a report on Friday that showed the U.S. oil and gas companies had cut their number of operating rigs for the fourth consecutive week. The number of rigs dropped from 585 to 585. (Reporting and editing by Colleen Waye, Sonali Paul).
(source: Reuters)
