Monday’s Asian morning trade saw a little increase in oil prices as the market was encouraged by encouraging economic statistics from China and the United States and by anticipation that major producers will continue to limit their supply of petroleum.
At 00:15 GMT, Brent crude was up 17 cents, or 0.2%, at $88.72 per barrel. West Texas Intermediate (WTI) crude for the United States increased by 25 cents, or around 0.3%, to $85.80.
After both contracts reached their highest settlement levels in more than half a year last week, ending a two-week losing skid, there has been a steady upward price movement.
According to statistics from Caixin’s manufacturing PMI survey, China’s manufacturing activity surprisingly increased in August. As a result, the world’s largest oil importer is now more upbeat about the state of its economy.
Prices have also been bolstered by a number of economic stimulus measures announced by Beijing last week, including reductions in deposit rates at some of the largest state-owned banks in the nation and looser lending restrictions for homebuyers.
Investors are still waiting for more significant action to support the nation’s struggling real estate market, which has been a major drag on the Chinese economy ever since it emerged from the epidemic.
The number of jobs added on nonfarm payrolls in the U.S. on Friday was greater than anticipated, rising by 187,000.
Analysts noted that a broader slowdown in the U.S. employment market, as evidenced by slower job growth, decreased the likelihood of further rate increases by the Federal Reserve in the near future.
After comments made on Thursday by Russian Deputy Prime Minister Alexander Novak that his country had reached an agreement with OPEC allies on the guidelines for ongoing export cuts, expectations of tightening oil supply grew. This week, a formal announcement with specifics on the proposed changes is anticipated.
Following a 500,000 bpd reduction in August, Russia has already announced that it will reduce exports by 300,000 barrels per day (bpd) in September. Additionally, it is anticipated that Saudi Arabia would extend a voluntary 1 million bpd cut into October.