Oil prices rose on Monday, supported by encouraging economic indicators from China, the world’s largest oil importer.
Market attention now turns to the upcoming OPEC+ meeting for further guidance on supply levels.
In addition, some bargain hunting contributed to the rise in crude prices following heavy losses in the previous week amid signs of easing tensions in the Middle East.
However, the recent ceasefire between Israel and Lebanon has shown signs of strain, as both sides accused each other of violating the ceasefire.
Furthermore, oil prices maintained some risk premiums due to escalating tensions between Russia and Ukraine.
Brent crude futures for February rose 0.3% to $72.02 per barrel, while West Texas Intermediate (WTI) crude futures also rose 0.3% to $67.92 per barrel.
The latest Purchasing Managers’ Index (PMI) data from China showed a further increase in manufacturing activity in November.
Both government and private reports support this trend, which follows a series of aggressive stimulus measures implemented by Beijing since late September.
The data has fueled optimism that economic activity in China will strengthen in the coming months, supported by continued government support.
In December, attention will turn to two key political meetings in China that are expected to provide additional insight into future stimulus measures.
