Home NewsBusiness News Oil rises nearly 2% on strong economic data but trade choppy

Oil rises nearly 2% on strong economic data but trade choppy

by WOOWinvest
0 comment
Oil rises nearly 2% on strong economic data but trade choppy


FILE PHOTO – An oil field worker works at a pump jack in PetroChina’s Daqing oil field in China’s northeastern Heilongjiang province November 5, 2007. REUTERS/Stringer (CHINA)

Register now for FREE unlimited access to Reuters.com

Register

HOUSTON, Aug 8 (Reuters) – Oil prices rose nearly 2% on Monday in volatile trading, bouncing off multi-month lows touched last week, as positive economic data from China and the United States fed hopes for demand despite nagging fears of a recession .

Brent crude futures settled $1.73, or 1.8%, at $96.65 a barrel. US West Texas Intermediate crude was at $90.76 a barrel, up $1.75, or 1.97%.

Last week, fears that a recession could dent energy demand pushed front-month Brent prices down 13.7% to their lowest since February. It was Brent’s biggest weekly drop since April 2020, and WTI lost 9.7%.

Register now for FREE unlimited access to Reuters.com

Register

Both contracts recovered some losses on Friday after job growth in the United States, the world’s top oil consumer, unexpectedly accelerated in July.

“Once again the macro influences have seeped back into this market especially as it relates to Friday’s employment number the economics of that should be giving us much better gasoline demand than we’re seeing,” said John Kilduff, partner at Again Capital LLC in New York.

On Sunday, China also surprised markets with faster-than-expected growth in exports. read more

China, the world’s top crude importer, brought in 8.79 million barrels per day (bpd) of crude in July, up from a four-year low in June, but still 9.5% less than a year earlier, customs data showed.

In Europe, Russian crude and oil products exports continued to flow ahead of an impending embargo from the European Union that will take effect on Dec. 5. read more

Last week, the Bank of England warned of a protracted recession in Britain. read more

In terms of US production, energy firms last week cut the number of oil rigs by the most since September in the first drop in 10 weeks.

Analysts at Goldman Sachs said they believe the case for higher oil prices remains strong, with the market in a larger deficit than they expected in recent months.

Register now for FREE unlimited access to Reuters.com

Register

Additional reporting by Shadia Nasralla, Florence Tan Editing by Mark Potter, Kirsten Donovan and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy