The oil continues to rise
Oil prices reference marks accelerated growth in the course of trading on Monday.
The cost of the August futures for Brent crude on the London ICE Futures exchange to 18:13 GMT made $of 41.31 per barrel, down $0.29 to (0,71%) above the price of closing of previous session.
The WTI crude for August to trading on the new York Mercantile exchange (NYMEX) by this time increased in price by $0,46 (1,20%) – to $to 38.95 per barrel.
Investors shifted attention to the prospects for economic recovery and hopes for new monetary stimulus after the people’s Bank of China (PBOC) promised to use new monetary policy tools to maintain adequate liquidity, Trading Economics writes.
According to experts, support for the oil market on Monday including provided optimistic data from China, the world’s largest oil importer, says Dow Jones.
Profits of large industrial enterprises of China in may 2020 rose 6% on higher production volumes and sales, with the gradual removal worldwide restrictions imposed previously with the aim of curbing the spread of coronavirus infection.
Total profits of industrial enterprises with annual revenue over 20 million yuan last month amounted to 582,34 billion yuan ($82,25 billion), according to data of the State statistical office (CSO) of the PRC. In April, the index decreased by 4.3%.
However in the market there are still concerns related to the continuing spread of the coronavirus and its implications for world oil demand.
The number of confirmed cases of coronavirus infection in the world has exceeded 10 million, the number of deaths 500 thousand, according to the Johns Hopkins University.
The American States of Texas and Florida were forced to suspend the removal of the restrictions previously imposed to contain the spread of coronavirus. The number of new cases is increasing nationwide, especially in the South and Western United States.
AxiCorp analysts, however, noted that the re-introduction of strict quarantine measures in the world may not, therefore, possible to expect preservation of the tendency to a gradual recovery in oil demand.
According to oilfield services company Baker Hughes released on Friday, the number of active oil rigs in the U.S. last week fell by a single unit – up to 188 units. The number of installations grows with the first half of March.