Brent crude rose for a second day on speculation stronger economic growth in China will boost demand from the world’s second-biggest oil consumer.
Futures approached $85 a barrel before paring gains. Chinese exports rose more than expected in October, data from the customs administration showed on Nov. 8. The country’s crude-oil imports jumped 9.2 percent last month from a year earlier. Crude also gained on escalating tensions in Ukraine.
“We are seeing some better-than-expected Chinese economic growth numbers,” said Gene McGillian, a senior analyst at Tradition Energy in Stamford, Connecticut. “Chinese oil imports are up and that’s kind of easing concerns about global demand. You are seeing a little bit of geopolitical risk come back in the market.”
Brent for December settlement rose $1.04, or 1.3 percent, to $84.43 a barrel at 9:05 a.m. New York time on the London-based ICE Futures Europe exchange after earlier climbing to $84.97. Prices slid for a seventh week through Nov. 7, the longest weekly retreat since 2001. The volume of all futures traded was 5.3 percent above the 100-day average for the time of day.
WTI for December delivery gained 57 cents, or 0.7 percent, to $79.22 a barrel on the New York Mercantile Exchange. Volume was 20 percent above the 100-day average. WTI’s discount to Brent widened to $5.19 on the ICE from $4.74 on Nov. 7.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.