Oil hits 10-month high on Chinese measures to stimulate ‎economy

Oil prices rose to their highest level in 10 months on Friday, after China reduced banks’ cash reserve requirements to boost its economic recovery, and amid expectations that the cycle of raising global interest rates will soon end.

According to Reuters, by 0027 GMT, Brent crude rose 46 cents, equivalent to 0.5%, to $94.16 a barrel, while US West Texas Intermediate crude rose 0.6% to $90.74. This is the highest trading level for the two crude oil standards since November.

Tina Teng, an analyst at CMC, said that reducing mandatory reserve requirements in China contributed to raising the prices of energy and industrial metals in general, adding that Chinese industrial production and retail sales data may be a driver for the market later on Friday.

Continued concerns about supply, and expectations that the US Central Bank will keep interest rates unchanged, have put oil prices on track to close higher for the third week in a row.

High interest rates increase borrowing costs for businesses and consumers, which may slow economic growth and reduce demand for oil.

“Betting on oil has become a favorite trade on Wall Street,” said Edward Moya, an analyst at OANDA. “No one doubts that the OPEC+ decision at the end of last month will keep the oil market in a state of severe scarcity in the fourth quarter.”