Oil rises about 2% thanks to strong economic data but trade is volatile

FILE PHOTO – An oil field worker works on a pumping crane at PetroChina’s Daqing oil field in northeastern China’s Heilongjiang Province, November 5, 2007. REUTERS/Stringer (China)

HOUSTON (Reuters) – Oil prices rose nearly 2% on Monday in choppy trading, rebounding from multi-month lows last week, as positive economic data from China and the United States boosted demand hopes despite nagging fears of a recession. .

Brent crude futures closed $1.73, or 1.8 percent, at $96.65 a barrel. US West Texas Intermediate crude was at $90.76 a barrel, up $1.75, or 1.97%.

Last week, fears that a recession could dampen energy demand sent Brent crude prices down 13.7% to their lowest since February. It was the biggest weekly drop for Brent since April 2020, and WTI lost 9.7%.

Both contracts made up for some losses on Friday after job growth in the United States, the world’s largest oil consumer, unexpectedly accelerated in July.

said John Kilduff, partner at Again Capital LLC in New. York.

China also surprised markets on Sunday with faster-than-expected export growth. Read more

Customs data showed that China, the world’s largest importer of crude, brought in 8.79 million barrels per day of crude in July, up from a four-year low in June, but still 9.5 percent below the previous year.

In Europe, exports of Russian crude and oil products continued to flow ahead of the impending ban from the European Union that will take effect on December 5th. read more

The Bank of England warned last week of a prolonged recession in Britain. Read more

Regarding US production, energy companies last week cut the number of oil rigs the most since September in the first decline in 10 weeks.

Analysts at Goldman Sachs said they believe the case for higher oil prices remains strong, with a larger market deficit than they have anticipated in recent months.

Additional reporting by Shadia Nasrallah and Florence Tan; Editing by Mark Potter, Kirsten Donovan and David Gregorio

Our criteria: Thomson Reuters Trust Principles.