Brent Helped By Positive Data From The U.S. And China
Brent crude oil traded steadily above $97 on Tuesday but remained under pressure from oversupply worries.
The commodity traded at $97.35 at 5:00 GMT helped by positive economic data from the world’s two largest consumers.
Oil demand in the U.S. has been steadily climbing as the nation’s economy recovers. On Monday, data showed that consumer spending improved in August, which added to the growing list of economic figures that suggest the region is back on track for recovery.
Household spending in the number one oil consuming nation rose 0.5 percent from July to August and gained 4.1 percent from last year’s figures.
Data from China was also positive and showed that the nation’s factory sector was improving. A survey released on Tuesday showed that the nation’s export orders increased in September.
Crude prices also found some support from unrest in Libya, where strikes cut down on the nation’s exports. CNBC reported that Libya’s National Oil Corp said the nation’s output had decreased by 25,000 barrels per day, but its current 900,000 bpd output still far exceeds the 200,000 bpd seen earlier this year.
Investors are now focusing on the ongoing debate within OPEC as the group decides whether or not it will need to intervene in order to buoy prices.
Several of the group’s members have been downplaying the recent drop in crude prices, saying markets will rebound with time. However, Iran has been very vocal about the need to cut production in order to boost prices. The group has a meeting coming up in November at which it is expected to discuss whether or not a supply cut is needed.
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