Oil prices are up more than a percent today after falling for three consecutive days. China’s central bank is trying to boost the property market there and the overall economy.
Concerns about the economy
North Sea Brent crude oil was up 1.4 percent at around 5:45 p.m. CET to $84.65 a barrel. U.S. light crude West Texas Intermediate (WTI) gained 1.8 percent to hover slightly above $80.80 a barrel. On Wednesday, oil prices fell more than 1.5 percent on concerns about the threat to China’s economy and possible further interest rate hikes in the United States.
Tight monetary policy
China’s central bank said today it would maintain a reasonable amount of liquidity and operate a vigorous monetary policy aimed at supporting economic recovery. “Oil traders like the fact that China will not tolerate a weakening of economic activity,” Naeem Aslam, an analyst at Zaye Capital Markets, told Reuters.
In addition to the Chinese central bank‘s announcement, oil is being buoyed by travel demand. The latter is reducing gasoline stocks. Travel demand in the United States typically falls after the July 4 Independence Day holiday. But gasoline inventories are now at their lowest level in more than two months, according to data released Wednesday.
Source Czech Press Office