Oil Rises With Focus on China’s Economy, Syrian War Resurgence
Oil rose on signs of a gradual recovery in China’s economy and a revival of Syria’s civil war, while strength in the dollar limited the gains.
West Texas Intermediate traded above $68 a barrel after factory activity showed tentative signs of recovery in China, the world’s biggest crude importer. The nation’s Politburo skipped releasing a readout for its regular November meeting, leading investors to believe that Beijing will introduce more forceful measures to bolster growth this month.
Crude pared gains as the dollar rose, making commodities priced in the currency less attractive. The greenback strengthened after France’s far-right National Rally party said it will back a motion to topple the government amid a budget dispute and President-elect Donald Trump warned BRICS nations about creating an alternative to the dollar.
In the Middle East, the Syrian city of Aleppo was captured by a breakaway faction of al-Qaeda over the weekend, and the rebel forces are now pushing south. It’s the latest flashpoint in a region that has been beset by conflict this year, although a truce between Israel and the Iran-backed Hezbollah appeared to be holding.
Meanwhile, OPEC+ pushed back its meeting on supply by four days. Traders will look for clues on future policy at the gathering, where the group is widely expected to delay a slight increase of production for a third time.
“We expect the plan to introduce more oil to the market to be postponed by another month or, more likely, three months,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management.
Oil has been trading in a range of a little more than $6 since mid-October, buffeted by geopolitical developments in the Middle East and Russia, the prospect of another Trump presidency and the outlook in China.
WTI for January delivery advanced 0.9% to $68.60 a barrel at 10:36 a.m. in New York.
Brent for February settlement rose 0.8% to $72.41 a barrel
Source : Bloomberg
