Oil held its biggest gain in almost seven weeks after improved U.S. and Chinese economic data aided the demand outlook and Saudi Aramco said it would go ahead with its long-awaited initial public offering.
Futures rose 0.8% in New York after jumping on Friday. U.S. Commerce Secretary Wilbur Ross met with Chinese Premier Li Keqiang Monday afternoon at a regional summit in Bangkok, a person familiar with the discussion said. That comes as optimism grows that a trade deal will be reached after bullish data from both China and the U.S. on Friday. Aramco, the world’s biggest oil company, announced its intention to list on Sunday, more than three years after Crown Prince Mohammed bin Salman first raised the idea.
The oil market is taking heart from the signs of strength in the world’s two biggest economies as the nations move closer to a partial trade deal, despite skepticism over whether a more comprehensive agreement can be reached. Hedge funds unwound bets against American crude for the first time in six weeks, but short wagers remain almost triple what they were in mid-September, according to data released Friday.
West Texas Intermediate for December delivery rose 47 cents to $56.67 a barrel on the New York Mercantile Exchange as of 10:42 a.m. in London. Brentfor January settlement added 56 cents to $62.25 a barrel on the London-based ICE Futures Europe Exchange, a six-week high. The global benchmark crude traded at a $5.51 premium to WTI for the same month.
Source : Bloomberg