A VLCC oil tanker is seen at a crude oil terminal in Ningbo Zhoushan port, Zhejiang province, China. REUTERS/Stringer /File photo
Oil prices experienced a slight increase on Tuesday following an unexpected decision by China to cut key policy rates for the second time in three months. However, gains were limited due to sluggish economic data from the country.
Brent crude futures rose by 0.1 percent to $86.32 per barrel, while U.S. West Texas Intermediate crude increased by 0.1 percent to $82.57 a barrel.
The rate cut by the People’s Bank of China (PBOC) on medium-term lending facility (MLF) loans provided some support to oil prices. The PBOC lowered the rate on 401 billion yuan ($55.25 billion) worth of one-year MLF loans to financial institutions by 15 basis points to 2.5 percent.
In an online statement, the PBOC stated that the cash injection aimed to maintain reasonably ample liquidity in the banking system, countering factors such as tax payments.
Robert Carnell, the regional head of research from ING bank, noted that the PBOC’s decision to cut rates earlier than expected suggests growing concerns about the state of the macroeconomy.
Despite the weak macroeconomic data, China’s demand for oil remained resilient. Refinery throughput in July increased by 17.4 percent compared to the previous year as refiners kept output high to meet domestic travel demand and take advantage of profitable fuel exports.
Additionally, Japan’s economy exceeded expectations in
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
