Oil prices rose in Asian morning trading today, Monday, as market sentiment was boosted by positive economic data from China and the United States, as well as expectations of continued crude supply cuts from major producers.
According to Reuters, Brent crude rose 17 cents, or 0.2 %, to $88.72 a barrel, and US West Texas Intermediate crude rose 25 cents, or about 0.3 %, to $85.80.
The continuous upward movement of the price comes after both contracts settled at their highest levels in more than half a year last week, breaking a two-week losing streak.
On the demand side, manufacturing activity in China expanded unexpectedly in August, Caixin’s manufacturing PMI survey data indicated, leading to renewed optimism about the economic health of the world’s largest oil importer.
A series of economic support measures announced by Beijing last week, such as interest rate cuts on deposits at some of the largest state-owned banks and easing borrowing rules for home buyers, also supported prices.