Oil wins after US infrastructure bill passes, Chinese exports rise

Crude oil storage tanks are seen from above at the Cushing Oil Hub in Cushing, Oklahoma on March 24, 2016. REUTERS / Nick Oxford

TOKYO, Nov. 8 (Reuters) – Oil prices rose on Monday amid positive signs of global economic growth, supporting energy demand, as Saudi state producer Aramco raised the official selling price of its raw.

Brent crude rose 84 cents or 1% to $ 83.58 a barrel at 6:09 am GMT, after falling nearly 2% last week. US oil gained 95 cents or 1.2% to $ 82.22, after falling nearly 3% through Friday.

President Joe Biden on Saturday welcomed the passage by Congress of a long-delayed $ 1 trillion infrastructure bill that could boost growth and fuel demand. Read more

China’s export growth slowed in October but exceeded expectations, supported by rising global demand ahead of the winter break and improving supply chains affected by coronaviruses. Read more

“We can expect overall global GDP growth to maintain demand for energy,” said Avtar Sandu, senior director of commodities at Phillip Futures in Singapore, adding that “prices may rise further on tight fundamentals. “.

Saudi Arabia also raised the price of its benchmark crude for Asian customers in December on Friday evening, beating market expectations. Read more

Aramco’s decision suggests that “demand remains strong” as the OPEC producer and other major oil exporters keep the reins of supply, ANZ Research said in a note.

Demand for jet fuel is expected to take off as more governments facilitate air travel with reduced restrictions for the coronavirus. Read more

The Organization of the Petroleum Exporting Countries and allies such as Russia, collectively known as OPEC +, agreed last week to stick to their plan to increase oil production by 400,000 barrels per day from December.

US President Joe Biden called on OPEC + to produce more barrels to cushion rising prices and said on Saturday his administration had “other tools” to deal with rising oil prices. Read more

Elsewhere, China’s oil imports fell in October to their lowest in three years, as state-owned refiners suspended purchases due to rising prices, while independent refiners were constrained by limited quotas for importing crude oil. Read more

Reporting by Aaron Sheldrick; edited by Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

About Leni Loberns

Check Also

EU leaders accuse US natural gas producers of profiting

Last month, French President Emmanuel Macron accused the United States of “double standards” because of …