As China imports more crude, West Texas Intermediate traded near the highest price in almost six weeks. The bright prospect for crude prices has brought some smiles among investors. The data has also been boasted by the U.S. jobless rate which fell to a great extent. This all is signaling a recovery in the world’s biggest oil consumers facing huge challenges in low crude prices.
In today’s trading, crude oil prices rose in Asia which is seeing continuous growth from last week on upbeat U.S. economic data. There was also a slight change in futures in New York after advancing 0.3 percent on Dec. 6 which in fact is the longest winning streak since August. A major reason behind the hike in crude prices is that China’s net oil imports rose 19 percent to 5.73 million barrels a day last month.
China which became a top consumer for some time is a major importer of crude oil. Last month the imports climbed from the lowest level in 14 months. Experts are predicting that West Texas contracts prices may approach $100 a barrel soon as currently it is into a zone of resistance after the rally it has seen so far.
Whereas on one hand, WTI received better growth for January delivery as it went up to $97.80 a barrel which is an increase of 15 cents in electronic trading on the New York Mercantile Exchange at 4:01 p.m. Singapore time. On the other hand, the contract rose 27 cents to $97.65 on Dec. 6, the highest close since Oct. 29.
In fact, the volume of all futures traded was about 61 percent below the 100-day average which helped in a slight increase in prices which went up by 5.3 percent last week, the highest since July. However, Brent for January settlement settled lower by 10 cents at $111.51 a barrel on the London-based ICE Futures Europe exchange.
Earlier in the last week’s conference held in Vienna, OPEC members reviewed the oil market outlook i.e. supply/demand projections for 2014. The member countries agreed to continue with the existing production, as according to them it is more than enough for the current demand.
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