Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Brent Rises On Chinese Optimism

Published 08/05/2013, 03:55 PM
Updated 05/14/2017, 06:45 AM

Brent climbed above $109 on Monday after new positive Chinese data gave investors hope for demand in the future. The commodity traded at $109.26 at 7:43 GMT on Monday morning.

New business orders in the number two oil consuming nation recovered from multi-year lows and helped China's services sector expand. After weeks of tepid economic data, many were expecting to see a contraction.

Some believe that the positive data has set the tone for several other economic indicators due out from China this week. However, despite the surprise expansion in China's service sector, most are betting the string of economic data this week will reveal a slowdown.

CNBC reported that some analysts who see poor numbers coming in this week are considering that a positive for oil prices anyway. With the Chinese government ready to step in and do whatever it takes to keep the economy from grinding to a halt, poor data could prompt new stimulus policies which would be seen as a positive.

Brent prices also found support after supply interruptions on Friday reminded investors of the tentative situation in the Middle East and Africa. Libyan oil exports have been reduced to less than half of their normal levels after strikes and protests kept several major terminals from functioning. The slowdown has been named one of the worst disruptions Libya has faced in the past year.

However, geopolitical tension affecting oil prices could ease in the near future as the US and newly elected Iranian President Hassan Rouhani recently committed to renewing diplomatic efforts to end the dispute over Tehran's nuclear capabilities. Sanctions on Iranian oil due to the dispute have kept Brent prices above $100 for the better part of the past two years.

BY Laura Brodbeck

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.