Oil prices rise in Asia due to positive economic data and supply cuts

One sentence summary – Oil prices in Asia have increased due to positive economic data from China and the US, as well as expectations of ongoing crude supply cuts, with Brent crude rising by 0.2% to $88.72 per barrel and US West Texas Intermediate crude increasing by 0.3% to $85.80, while China’s unexpected expansion in manufacturing activity in August has led to renewed optimism about its economic health and Beijing’s economic support measures have further supported the rise in oil prices, with investors now awaiting more substantial moves to bolster China’s property sector, and the positive data from the US reducing the likelihood of further rate hikes by the Federal Reserve, contributing to the upward trend in oil prices, and expectations of tightening oil supplies have also grown following Russia’s announcement of continued export cuts in collaboration with OPEC, with plans to reduce exports by 300,000 barrels per day in September following a 500,000 barrels per day cut in August, and Saudi Arabia is also expected to maintain a voluntary 1 million barrels per day cut into October.

At a glance

  • Oil prices in Asia have increased due to positive economic data from China and the US, as well as expectations of ongoing crude supply cuts.
  • Brent crude rose by 0.2% to $88.72 per barrel.
  • US West Texas Intermediate crude also saw a 0.3% increase to $85.80.
  • China’s unexpected expansion in manufacturing activity in August has led to renewed optimism about its economic health.
  • Expectations of tightening oil supplies have grown due to Russia’s continued export cuts and Saudi Arabia’s voluntary cut.

The details




Oil Prices Rise in Asia

Oil prices in Asia have seen an increase

driven by positive economic data from China and the US, as well as expectations of ongoing crude supply cuts.

Brent crude experienced a 0.2% increase

reaching $88.72 per barrel.

US West Texas Intermediate crude also saw a rise

with a 0.3% increase to $85.80.

China, the world’s largest oil importer, saw an unexpected expansion in its manufacturing activity in August.

This expansion has led to renewed optimism about China’s economic health.

Beijing has announced economic support measures, such as deposit rate cuts and easing borrowing rules.

These measures have further supported the rise in oil prices.

Investors are now awaiting more substantial moves to bolster China’s property sector.

The property sector has been a drag on China’s economy.

In the US, employment data revealed higher-than-expected nonfarm payrolls.

This reduces the likelihood of further rate hikes by the Federal Reserve.

The positive data from the US has contributed to the upward trend in oil prices.

Expectations of tightening oil supplies have also grown.

This follows Russia’s announcement of continued export cuts in collaboration with OPEC.

In September, Russia plans to reduce exports by 300,000 barrels per day.

This follows a 500,000 barrels per day cut in August.

Saudi Arabia is also expected to maintain a voluntary 1 million barrels per day cut into October.

The combination of positive economic data from China and the US, ongoing crude supply cuts, expansion in China’s manufacturing activity, and supportive economic measures implemented by Beijing have all contributed to the rise in oil prices.

Additionally, expectations of tightening oil supplies resulting from continued export cuts by Russia and a voluntary cut by Saudi Arabia have also contributed to the upward trend in prices.


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cnbc.com
– Oil prices in Asia rose due to positive economic data from China and the US, as well as expectations of ongoing crude supply cuts.
– Brent crude increased by 0.2% to $88.72 a barrel, while US West Texas Intermediate crude rose by 0.3% to $85.80.
– China’s manufacturing activity unexpectedly expanded in August, leading to renewed optimism about the economic health of the world’s largest oil importer.
– Economic support measures announced by Beijing, such as deposit rate cuts and easing borrowing rules, have also supported prices.
– Investors are waiting for more substantial moves to support China’s property sector, which has been a drag on the economy.
– US employment data showed higher-than-expected nonfarm payrolls, reducing the chances of further rate hikes by the Federal Reserve.
– Expectations of tightening oil supplies have grown after Russia’s announcement of continued export cuts in collaboration with OPEC.
– Russia plans to cut exports by 300,000 barrels per day in September, following a 500,000 bpd cut in August.
– Saudi Arabia is expected to maintain a voluntary 1 million bpd cut into October.

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