Crude Oil Rises as China Moves to Boost Economy

• Crude Oil Rises as China Moves to Boost Economy

Global oil prices rose on Thursday to a month-high following China’s decision to stimulate its falling economy amid novel coronavirus outbreak.

The Brent crude oil, against which Nigerian oil is measured, gained 29 cents to $58.41 per barrel after reaching $59.71 earlier in the day.

The US West Texas Intermediate oil rose 16 cents to $53.45 per barrel during the same trading session.

The Chinese government on Thursday announced it will lower the benchmark lending rate to help ease economic worries and halt slowing demand in the world’s largest importer of crude oil and the second-biggest oil consumer.

Also, a possible slow down of crude oil supply from Venezuela following the United States sanction of Russian oil giant, Rosneft, for working with Venezuela’s state-run PDVSA could help curb supply in the near-term, especially with the Lybian uncertainty. This possibility also contributed to rising global oil prices this week.

“The market found support in still growing optimism over a soon-to-be-felt increase in Chinese economic activity and the prospect of Venezuelan export constraints increasing,” JBC Energy said.