Oil prices rose today due to robust factory activity in China that made investors go into commodities like copper, but intense expansion of U.S. oil production pulled back price increases.
The new report showed China added 7.2% in industrial production year-over-year in January-February period of 2018, greatly overtaking forecasts, and along with that the data revealed that oil output shrank by 1.9%.
Copper and palladium, an important element for cars that run on gasoline, grew by about 1%, an event that caused crude price to bounce.
Brent gained 27 cents, reaching $64.92 per barrel, moving up from the previous $64.43.
U.S. WTI futures CLc1 increased by 31 cents, attaining $61.02 for a barrel.
Copper has topped $7,000 for a tonne and it seems that much of this is deriving from this tremendous advance in the industrial production of China, so general macro flows are strengthening that upward movement, says Oliver Nugent of ING.
China is the biggest buyer of commodities in the world and the largest car market. China’s oil output reduced by 1.9% in the first two months of the year to near 3.77 mln barrels a day, though the volume processed by refineries jumped by 7.3% to 93.4 mln barrel a day, meaning that the country’s import is set to stay up.