Brent crude oil price up 3% on positive economic data out of China

Oil prices rose more than 3% on Wednesday, driven by strong economic data emanating from China’s service industry.

Oil prices got a boost on Wednesday, climbing more than 3% with the help of strong economic data coming out of China’s services sector.

Brent crude is up $1.85 to $60.11 a barrel as of 15:45 GMT on Wednesday, while the US West Texas Intermediate (WTI) has climbed $1.83 to $55.77 a barrel.

‘Crude oil prices sharply higher today, ahead of the US API numbers later on,’ IG Senior Analyst Josh Mahony tweeted. ‘Taking Brent within reach of crucial $60.61 swing-high. Break of that level would bring more bullish ST picture.’

The uptick in oil prices is a welcome surprise for investors after having to endure three consecutive days of losses. The news also helped major US-based oil and gas companies’ stocks rally, with ExxonMobil, Chevron and ConocoPhillips seeing a 1% to 2% rise in their respective share prices.

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Chinese services boost lifts oil prices

Global markets bounced back after a private survey showed that business activity in China’s services industry grew at the fastest pace in three months in August.

The news helped relieve downward pressure on oil markets, with China being the world’s second biggest consumer of the commodity and its largest importer.

The boost to oil markets will likely be short-lived, however; with the ongoing US-China trade war showing little signs ending and US President Donald Trump threatening to crackdown even harder on Beijing if he wins a second term in office.

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