Oil prices rose on Monday, supported by upbeat factory activity in China, the world’s second largest oil consumer, and as Israel resumed attacks on Lebanon despite a ceasefire pact, stoking tension in the Middle East.
Brent crude futures climbed 34 cents, or 0.47%, to $72.18 a barrel by 0452 GMT while U.S. West Texas Intermediate crude was at $68.32 a barrel, up 32 cents, or 0.47%.
“Oil prices have managed to stabilise into the new week, with the continued expansion in China’s manufacturing activities reflecting some degree of policy success from recent stimulus efforts,” said Yeap Jun Rong, market strategist at IG.
This offered some slight relief that oil demand from China may hold for now, he added. A private-sector survey showed China’s factory activity expanded at the fastest pace in five months in November, boosting Chinese firms’ optimism just as U.S. President-elect Donald Trump ramps up his trade threats.
Still, traders are eyeing developments in Syria, weighing if they could widen tension across the Middle East, Yeap added. A truce between Israel and Lebanon took effect on Wednesday, but each side accused the other of breaching the ceasefire.
