Oil Prices Rise On Solid Chinese Demand


Oil Prices Rise On Solid Chinese Demand

January West Texas Intermediate crude rose 67 cents, or 1.2%, to settle at $57.36 a barrel on the New York Mercantile Exchange.

A recovery in China's crude imports in November from a one-year low was enough to trump concerns about escalating USA shale production on Friday, as traders propelled West Texas Intermediate upward by 67 cents to settle at $57.36 per barrel and Brent up $1.20 to end the session at $63.40.

Oil prices fell on Monday, pulled down as the latest rise in the United States rig count pointed to a further increase in American production, potentially undermining efforts led by OPEC to tighten markets.

Traders said a stronger dollar, which has gained over 0.9 percent this month against a basket of other leading currencies, was weighing on prices.

"A strong USA dollar could act as a headwind to commodities", Bank of America Merrill Lynch (BoAML) said in its 2018 outlook.

China's crude oil imports rose to 9.01 million barrels per day (bpd), the second highest on record, data from the General Administration of Customs showed.

Still, data this week showed that USA crude output had risen 25,000 bpd to 9.7 million bpd in the week to December 1, the highest production since the 1970s and close to the production levels of Russian Federation and Saudi Arabia.

Crude Oil Daily chart has formed a "Rising wedge" pattern.

Crude oil futures fell Rs 14 to Rs 3,678 per barrel today after participants reduced their exposure in tune with a weak trend in Asian markets.

USA investment bank Jefferies forecast 2018 global oil demand growth of 1.5 million bpd, driven by nearly 10 percent demand growth in China.

LONDON, Dec 11 (Reuters) - Oil markets edged lower on Monday as ongoing output cuts led by OPEC were countered by rising USA drilling activity that points to a further increase in American production.

The output cuts pushed oil prices higher between June and October, with Brent gaining around 40 percent. OPEC-led output curbs may end earlier than scheduled if the market re-balances by June, Kuwait Oil Minister Issam Almarzooq said Sunday.