Oil Prices Jump on Positive Demand Outlook in China
Oil prices edged higher in the global commodities market on Monday over a positive demand outlook in China, one of the world’s second-largest oil consumers.
Brent crude futures climbed 8 cents, or 0.1%, to $71.92 a barrel, while U.S. West Texas Intermediate crude was at $68.09 a barrel, up 9 cents, or 0.1%.
The price surge was also supported by renewed tensions in the Middle East as Israel and Lebanon trade blame on violations of agreement in ceasfire deal.
Reports revealed that Israel resumed attacks on Lebanon, stoking tensions in the Middle East. A truce between Israel and Lebanon came into effect on Wednesday, but both sides have accused each other of breaching the ceasefire.
The Lebanese Health Ministry said in a statement that several people were wounded in two Israeli strikes in south Lebanon. Air strikes also intensified in Syria as President Bashar al-Assad vowed to crush insurgents who had swept into the city of Aleppo.
The US dollar has been projected to strengthen in Dec after U.S. President Donald Trump threatens BRICS members with a higher tariff in an attempt to denounce the US dollar.
China’s Caixin Manufacturing Purchasing Managers Index (PMI) came in over expectations at 51.5 for November. The National Bureau of Statistics PMI on Saturday also rose to 50.3, from 50.1 in October. The data raised expectations that economic activity in the country will improve amid continued support from Beijing.
The official Lebanese news agency NNA said the Israeli army on Monday morning opened fire toward the town of Naqoura in southern Lebanon, the latest violation of the cease-fire that entered into force last week.
Strong US dollar has contributed to restraining crude oil gains. Ahead of US rate cuts, the dollar has bolstered its value, which in turn is making oil priced in dollars more expensive for holders of other currencies.
The US dollar index, which measures the US dollar’s value against other currencies, rose 0.5% to 106.350. The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as the OPEC+, will decide production policy for the early months of 2025 on Thursday.
Last week, both benchmarks posted a weekly decline of more than 3%, on easing concerns over supply risks from the Israel-Hezbollah conflict and forecasts of surplus supply in 2025 even as OPEC+ is expected to extend output cuts. Litigation Claims against Access Holdings Plc Hit N11.3Trn
