Gulf News

Oil rises to 3-month high on upbeat data

Traders cautious of profit-taking possibilit­ies as oil prices stay high

-

Oil prices rose to threemonth highs yesterday, underpinne­d by optimism over an expected China-US trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following US air strikes in Iraq and Syria.

Brent crude futures were up 0.9 per cent at $68.75 a barrel, up 59 cents. The internatio­nal benchmark has risen around 27 per cent in 2019.

West Texas Intermedia­te (WTI) crude futures rose 22 cents or 0.2 per cent to $61.94 a barrel by 0940 GMT. The US benchmark is up about 36 per cent so far this year.

“Oil prices have reached their highest level since the Saudi oilfield attack in mid-September”, said market analyst Margaret Yang of CMC Markets.

Despite a the relatively low price gains despite an array of bullish factors, Yang added: “Traders are also cautious about profit-taking possibilit­ies.” Tensions in the Middle East have flared up as the United States carried out air strikes yesterday against the Kataib

Hezbollah militia group, while protesters in Iraq on Saturday briefly forced the closure of its southern Nassiriya oilfield.

Factory activity

Oil prices were also supported by declining US crude stocks, which fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll.

In China, factory activity had likely expanded again in December on stronger external demand and an infrastruc­ture push at home although the pace of growth is set to ease as markets await more certainty on a US-China trade truce, a Reuters poll showed. China’s Commerce Ministry said it is in close touch with the United States on the signing of a long-awaited trade deal.

 ?? Reuters ?? A worker at the Zawiya Oil refinery. Tensions in the Middle East have flared up as the US carried out air strikes yesterday.
Reuters A worker at the Zawiya Oil refinery. Tensions in the Middle East have flared up as the US carried out air strikes yesterday.

Newspapers in English

Newspapers from United Arab Emirates