Investing.com — Oil prices rose in Asian trade on Monday after positive economic data from China, its biggest importer, and an upcoming meeting of OPEC+ for further clues on supply. The focus shifted to the meeting.
Market-buying measures also helped oil prices rise, after oil prices fell sharply last week on signs of easing tensions in the Middle East. However, the recent ceasefire between Israel and Hezbollah showed signs of tension after both parties accused each other of ceasefire violations.
Oil also maintained some risk premium due to worsening tensions between Russia and Ukraine.
Prices expiring in February rose 0.3% to $72.02 a barrel and rose 0.3% to $67.92 a barrel by 8:16 p.m. ET. .
China’s PMI shows improvement in activity
China’s Purchasing Managers Index data showed manufacturing activity in the world’s biggest oil importer further accelerated in November.
Both data also reflect this trend, and this comes after the Chinese government rolled out a number of aggressive economic stimulus measures since late September.
The statistics raised hopes that the country’s economic activity will improve in the coming months with continued support from the Chinese government. The focus in December will be on two important political meetings in China, which are expected to provide further clues on the stimulus package.
Still, any optimism about China was dashed by threats of further tariffs from President-elect Donald Trump. President Trump’s threats also pushed up the dollar, limiting the overall rise in crude oil prices.
OPEC+ meeting awaits further supply clues
This week also focuses on the Organization of the Petroleum Exporting Countries and its allies, including Russia, scheduled for Thursday. The meeting was delayed by four days.
The cartel is expected to further delay plans to increase production as oil prices continue to slump and concerns about sluggish demand next year.
OPEC+, like other energy market organizations including the International Energy Agency, has consistently revised downward its demand forecasts for 2024 and 2025.
