Oil prices rose on Tuesday on news of fresh monetary stimulus from top importer China, and concerns escalating tensions in the Middle East could hit supply from the key producing region, while a major hurricane loomed over the U.S., the world’s biggest crude producer.
Brent crude futures for November were up 69 cents, or 0.93%, at $74.59 a barrel at 0330 GMT. U.S. WTI crude futures for November rose 74 cents, or 1.05%, to $71.11.
Both contracts closed lower on Monday as demand worries took precedence in investors’ minds after disappointing euro zone business activity and on lingering concerns about Chinese fuel consumption.
“WTI has gained this morning after China moved to lower its key lending rates. The crude oil market has been looking desperately towards Chinese authorities for further easing measures to counter the economic slowdown,” said Tony Sycamore, market analyst at IG.
“Today’s announcement will go some way to removing downside risks to the crude oil price,” added Sycamore.
