Monday saw a little increase in oil prices after China announced moves to support its ailing economy, but investors are still concerned about the rate of growth and potential demand-diminishing future increases in U.S. interest rates
In its most recent effort to support faltering markets, China cut the stamp duty on stock transactions in half.
The market is also keeping a close eye on Tropical Storm Idalia and any threat it may pose to the Gulf of Mexico’s oil and gas production.
By 11:22 a.m. ET (1520 GMT), Brent crude had risen 21 cents, or 0.3%, to $84.69 per barrel.
The peak of the session was above $85. To $80.27, U.S. West Texas Intermediate crude rose 43 cents, or 0.6%.
According to Ole Hansen, head of commodity strategy at Saxo Bank, today’s attention is on “China’s actions to support its economy, Tropical Storm Idalia moving towards Florida, and whether Brent can regain momentum on a break above $85.”
The last update showed Idalia increasing as it reached Cuba.
According to IG market analyst Tony Sycamore, it most certainly had the effect of causing a day or two of power disruptions.
According to him, this “should see some short-term support for the oil price.”
After Federal Reserve Chair Jerome Powell warned the U.S. central bank may need to hike rates further to slow still-too-high inflation, Brent and U.S. oil suffered losses for a second consecutive week on Friday./Reuters