Oil stabilizes below $100 a barrel after Chinese data

Oil prices stabilized Monday, November 7, hovering around $100 a barrel, as support from a weaker dollar and a recovery in Chinese crude imports were offset by renewed demand concerns linked to China’s tough approach to containing the coronavirus.

By 10:26 GMT, Brent crude futures rose 6 cents, or 0.06%, to $98.63 a barrel. Meanwhile, US West Texas Intermediate crude fell one cent, or 0.01%, to record $92.60 a barrel.

The benchmark fell more than a dollar earlier in the session after Chinese officials reiterated their commitment to a strict approach to containing the Coronavirus over the weekend, dashing hopes of a recovery.
Oil demand is the world’s largest importer of crude.

Brent and WTI rose 2.9% and 5.4% last week, respectively, as rumors of a possible end to strict lockdowns in China sent Chinese stock markets and commodity prices higher despite no changes announced.

The dollar fell against the euro, while the pound was boosted by investor sentiment and a rally in European stock markets.

While China’s imports and exports contracted unexpectedly in October, its crude oil imports rebounded to reach their highest level since May.

Oil prices were boosted by expectations of tighter supplies as the European Union’s ban on seaborne Russian crude exports came into effect on Dec. 5, although refineries around the world are ramping up production.