Oil rises after better news China and inventories By Investing.com


© Reuters. Oil rises after better news China and inventories

Oil prices rise this Friday after data on crude oil reserves and the progress of trade talks.

They are at $ 61.03 per barrel at 6:40 (CET), up 0.13%, while they are at $ 56.37 per barrel, up 0.12%.

The Energy Information Administration published an estimate saying that US crude oil reserves had decreased by 4.8 million barrels during the week ending August 30.

This takes place after the American Petroleum Institute placed the increase in crude oil reserves at about 401,000 barrels during the week ending August 29. This made the reserves amount to 429.1 million barrels, compared to analysts' expectations of a decrease of 2.5 million barrels.

Oil prices began to rise after the publication of very favorable economic data from China, the world's second largest oil consumer.

Recent data has indicated that China's service sector expanded in August at the fastest pace in the last three months, driven by new orders.

In Hong Kong, the decision of the Chief of State Carrie Lam to formally and completely withdraw the controversial extradition bill has also helped boost investor confidence in Chinese markets. The special administrative region of China has faced many political unrest since June due to the proposed bill.

However, observers believe that the riots will continue as protesters have only seen one of their five demands fulfilled.

Even so, contributing to the profits we have the announcement of the United States trade representative, Robert Lighthizer, and the Secretary of the Treasury, Steven Mnuchin, who have announced that the trade war talks with a Chinese delegate between the United States and China have been scheduled for "the next few weeks" in Washington.

"The oil rises after knowing that China and the United States will resume their business talks with an important meeting in October," said Alfonso Esparza, market analyst at OANDA.

Although both economies have suffered losses, neither seems willing to compromise. The trade war has become the main factor of attention when forecasting trends in oil demand, with priority even over OPEC policies and increasing crude oil production in the United States.

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