Suara.com – Oil prices rose nearly 2 percent on Monday in volatile trading, up from lows touched last week.
This increase was supported by positive economic data from China and the United States which gave hope for demand even though it was overshadowed by recession fears.
Quoting CNBC, Tuesday (9/8/2022) Brent crude futures, the international benchmark, closed up $1.73, or 1.8 percent, to $96.65 per barrel.
Meanwhile, the United States benchmark, West Texas Intermediate crude futures, soared $1.75, or 1.97 percent, to settle at $90.76 per barrel.
Last week was a bad week for world oil prices
Last week, fears a recession could dampen energy demand pushed front-month Brent prices down 13.7 percent to their lowest level since February. It was Brent’s biggest weekly drop since April 2020, and WTI lost 9.7 percent.
Both contracts offset some of Friday’s losses after job growth in the United States, the world’s top oil consumer, unexpectedly accelerated in July.
“Once again the macro influence is seeping back into this market especially with regards to Friday’s employment figures, which should give us much better gasoline demand than we’re seeing,” said John Kilduff, partner at Again Capital LLC in New York.
On Sunday, China also surprised markets with faster-than-expected export growth.
China, the world’s top crude importer, carried 8.79 million barrels per day (bpd) of crude in July, up from a four-year low in June, but still 9.5 percent lower than a year earlier, customs data showed.
World Oil Prices Keep Dropping, Now Only USD 88/Barrel, Could Fuel Prices Drop?
In Europe, Russian exports of crude oil and oil products continue to flow ahead of the upcoming embargo from the European Union which will take effect on December 5.