LONDON: Oil traded higher on Monday after the United States vowed to keep attacking Yemen’s Ansar Allah until the group ends its assaults on shipping and Chinese economic data fuelled hopes for higher demand.
US President Donald Trump launched military strikes against the Ansar Allah on Saturday over the group’s attacks against Red Sea shipping. One US official said the campaign might continue for weeks.
Brent futures rose 72 cents, or 1 per cent, to $71.30 a barrel by 09:20 GMT, while US West Texas Intermediate crude futures gained 59 cents, or 0.9 per cent, to $67.77.
Chinese economic data also supported prices. Retail sales growth quickened in January-February in a welcome sign for policymakers’ efforts to boost domestic consumption even as joblessness rose and factory output eased.
“Oil prices are benefiting from better-than-expected Chinese economic data, potential more stimulus measures in China and renewed tensions in the Middle East, although so far there are still no supply disruptions,” said Giovanni Staunovo of UBS.
The oil market has a “comparatively healthy physical backdrop,” said Tamas Varga of broker PVM, citing the premium at which nearby oil contracts are trading to those for later delivery, a structure known as backwardation. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
