The price of a barrel of Brent BRENT Brent or North Sea crude is a variation of crude oil that serves as a reference in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for fixing oil prices. North Sea for November delivery closed up 1.72%has $75.17.
The barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in determining the price of crude oil and as a raw material for oil futures contracts on the New York Mercantile Exchange (Nymex), the energy exchange specializing in energy.) American of the same deadline has gleaned 1.69%has $71.56.
“Today’s story is China“, explained Phil Flynn of Price Futures Group, “because every time people talk about a weakened market, they talk about China.“
China’s central bank (PBoC) on Tuesday outlined a series of measures aimed at stimulating the world’s second-largest economy, which is still recovering from the coronavirus pandemic.
The institution will notably lower one of its key rates, encourage commercial banks to reduce the cost of real estate credit and create a financial market stabilization fund.
“Many people say that China has finally become more radical.“, notes Phil Flynn, after having made marginal adjustments, which did not have the desired effect.
Beijing’s move extends the positive sentiment that emerged from the U.S. central bank’s (Fed) sharp cut in its key interest rate last week, according to Daniel Ghali of TD Securities.
“We are aware that monetary policy decisions take time to have an effect on demand for raw materials, (…) but as it stands, this package of measures supports the demand trend.“, the analyst continued in a note.
For Phil Flynn, black gold was also encouraged by the arrival of tropical storm Helen in the Gulf of Mexico.
According to the Bureau of Environmental Protection and Safety (BSEE), preventive platform shutdowns had cut into American offshore crude production capacity by Tuesday. 16%.
Helen is, however, heading more towards Florida and should spare oil and gas installations in Texas and Louisiana.
With the passage of Hurricane Francine in mid-September, “production had been reduced for a while“, Phil Flynn recalled, “but this time it should be restored quickly“.
(c) AFP
Comment Oil rebounds on China recovery and US storm
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