Oil prices jump to highest in a month on demand hopes
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The news: Oil prices jumped to their highest closing levels in over a month, adding to last week's gains, as investors grew more optimistic on the demand outlook.
The numbers: Benchmark Brent crude futures rose 2% to USD84.25 a barrel. US West Texas Intermediate (WTI) crude futures climbed 2.4% to USD80.33 a barrel.
The context: The lift follows the first weekly gain in four weeks for both benchmarks after Organization of the Petroleum Exporting Countries and allies (OPEC+), the International Energy Agency and US Energy Information Administration all raised confidence that oil demand would improve in the second half of the year.
Reassurances from OPEC+ that a plan to raise supplies from the fourth quarter of this year could be paused or reversed based on market conditions have also helped prices firm.
Analysts said economic data from China also supported hopes of stronger oil demand from the top importer. The Asian giant’s manufacturing investment in the first five months of this year showed robust growth of 9.6%, government data showed on Monday.
The source: Reuters
