Oil Rates Grow on Hopes for Further OPECs Supply Cuts

Oil rates soared more than 1 percent on first working day of the week, as indicators of improved manufacturing sector in China showed an increase in fuel demand. Meantime, hints of further OPEC-led supply cuts suggest a possible reduction in supply in 2020.

Photo: Reuters

Brent oil futures soared by 1.21 percent to $61.22 per barrel, while WTI front-month benchmark surged by 1.52 percent, to $56.02 per barrel at 8.22 GMT.

Oil rates grew on Monday after China’s factories activity in November showed a significant jump. One should recall, that manufacturing activity of the world’s largest oil consumer improved for the first time in the last 7 months due to rising local demand amid public stimulus moves.

Prices also got support after the Iraqi oil official said over weekend that OPEC and its partners plan to consider further oil production reductions by around 400,000 barrels per day to reach 1.6 million bpd.