LONDON: Oil jumped more than $1 a barrel on Thursday due to expectations that falling prices may lead to production cuts, coupled with a steadying of the yuan currency after a week of turmoil spurred by escalation in US-China trade tensions.
Brent crude was up $0.67 at $56.90 a barrel by 1130 GMT, after hitting a session high of $58.01. US West Texas Intermediate (WTI) crude futures rose $0.96 to $52.05 a barrel after hitting a peak of $52.84. China’s yuan strengthened against the dollar and its exports unexpectedly returned to growth in July on improved global demand despite US trade pressure.
Reports that Saudi Arabia, the world’s biggest oil exporter, had called other producers to discuss the slide in crude prices might also have supported the market, he said. Both crude contracts fell to their lowest since January on Wednesday after the US Energy Information Administration said US crude stockpiles rose last week after nearly two months of decline as imports hit their highest since January.