Chinese data boosts oil despite return of tensions

Markets move

Crude oil futures rose Brent Eight cents, or 0.1 percent, to $71.92 a barrel by 01:07 GMT, while U.S. West Texas Intermediate crude was at $68.09 a barrel, up nine cents, or 0.1 percent, according to Reuters data.

The rise in prices occurred after an official survey showed it Factory activity China posted weak expansion for the second straight month in November, suggesting a wave of stimulus is finally starting to emerge as US President-elect Donald Trump steps up his trade threats.

“The Chinese data is good, but I think it’s also coming because of fears that the ceasefire between Israel and Lebanon won’t hold,” said Tony Sycamore, market analyst at IG in Sydney.

A truce between Israel and the Hezbollah group in Lebanon took effect last Wednesday, but the two sides have been exchanging accusations of violating it.

Last week, two benchmarks, Brent and West Texas Intermediate, fell more than 3 percent, as worries about supply damage from the conflict between Israel and Hezbollah receded and the possibility of a supply increase over the next year despite expectations that it would expand. OPEC+ for production cuts.

Sources told Reuters last week that the coalition OPEC+which includes the Organization of the Petroleum Exporting Countries and allies including Russia, has postponed its next meeting on production policy until December 5 and is considering delaying the increase in oil production. oil Which was supposed to start next month.

“Extending production cuts will allow OPEC+ more time to assess the impact of Trump’s tariff and energy policy announcement and to see the reaction,” Sycamore said. China“.