Oil climbs on supply concerns, recovery in China demand

Oil prices rose for a third straight session on Monday, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and by optimism about a recovery in demand in China, Reuters reported.

Brent crude futures rose 71 cents, or 0.8%, to $94.64 a barrel by 0622 GMT while U.S. West Texas Intermediate crude futures were at $91.55 a barrel, up 78 cents, or 0.9%.

“China’s stimulus policy, resilient U.S. economic data, and OPEC+’s ongoing output cuts are the bullish factors that support the oil market’s upside movement,” CMC Markets analyst Tina Teng said, referring to a reserve ratio cut by China’s central bank last week to boost liquidity and support its economy.

Traders will be watching decisions and commentary by central banks, including the U.S. Federal Reserve, this week on interest rate policies, as well as key economic data out of China.