Brent Moves Toward $95 After Losses On Tuesday
Brent crude oil made its way toward $95 on Wednesday, helped by strong Chinese data.
The commodity traded at $94.94 at 4:20 GMT, still under pressure from the global supply glut. On Tuesday, crude prices tumbled as growing global supply weighed.
Brent lost more than $2.00, the commodity’s largest one-day drop since January.
Prices found some support from Chinese PMI data that showed the second largest oil-consuming nation’s economy may be steadying. China’s Purchasing Manager’s Index came in above expectations at 51.1 in September, a good sign for the region’s economic growth.
The figure was comfortably above the 50 mark that denotes expansion, which helped calm worries that the Chinese economy is on the decline.
China also announced new stimulus measures in an effort to reach its 7.5 percent growth target this year.
Beijing has decided to cut mortgage rates and down payments, something the Chinese government hasn’t considered since 2008. Lower mortgage rates will likely help boost the nation’s housing market, something that has been weighing on the Chinese economy.
Meanwhile, investors have been keeping an eye on OPEC as the group prepares for its November meeting. While some members have downplayed the recent drop in prices, others are calling for a supply cut in order to keep prices above $100.
Reuters reported that the organization’s supply reached a near two year high in September as Libyan output recovered. Most anticipate that the group will hold off on a cutback until Brent prices approach the $90 level.
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