WTI Oil Rises on Hopes China's Interest-Rate Cuts Will Revive Demand From the Largest Importer
West Texas Intermediate (WTI) crude oil closed higher on Monday after China lowered interest rates as the No.1 oil importer looks to stimulate its flagging economy.
WTI crude for November delivery was last seen up US$1.34 to settle at US$70.56 per barrel, while December Brent crude, the global benchmark, was last seen up US$1.23 to US$74.29.
The rise comes as The People's Bank of China on Monday lowered its benchmark interest rate to 3.1% from 3.35%, according to the Financial Times, as the country attempts to reach its 5% target for GDP growth this year after last week reporting 4.6% growth for the third quarter.
The rate cut is China's latest attempt to boost an economy weighted down by a debt crisis in its key real-estate sector, weak consumer spending and rising unemployment . The country's oil demand, which rose by one-million barrels per day in 2023, is expected to rise by just 0.1-million bpd this year and 0.3-million bpd in 2025, according to the Energy Information Administration, on a weakening economy and a transition to renewable energy.
Source : MT Newswires
