Oil prices continue gains despite China contraction
Brent and US crude, or WTI, extended gains on Monday despite weak economic data from China, offset by tight supply concerns. It follows oil production cuts from Saudi Arabia and Russia. IGTV’s Angela Barnes has more.
(Video Transcript)
Oil on the rise
Oil prices continue their gains, again, despite weak economic data from China, the world's second biggest oil consumer. Manufacturing data shows the sector is still contracting with July's PMI reading at 49.3. However, it was up from 49 in June. A reminder that a reading above 50 represents expansion and below is a contraction.
Let's look at the oil charts. First of all, let's take a look at Brent. And the price is up about 0.76% and trading around $85 a barrel. Crude is up 0.96% and trading about the 80, just above $81 a barrel also.
US not yet peaking
Well, US crude hasn't reached the last peak seen on 12 April. And that was a result at the time of lower-than-expected US inflation data.
But cuts from Saudi Arabia and Russia have been supporting oil prices with crude up about 6% last week.
Weaker data from China probably offset also by Chinese authorities pegging to shore up the country's economy, along with a tightening of supply boosting those oil prices today.
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