subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now
Picture: UNSPLASH/IAN SIMMONDS
Picture: UNSPLASH/IAN SIMMONDS

Singapore — Oil prices hovered at their highest since October on Monday as investors eyed the impact on global fuel demand from colder weather in the northern hemisphere and Beijing’s economic stimulus measures.

Brent crude futures rose 15c , or 0.2%, to $76.66 a barrel by 01:25 GMT after settling on Friday at its highest since October 14. US West Texas Intermediate crude gained 22c , or 0.3%, at $74.18 a barrel after closing on Friday at its highest since October 11.

Beijing is cranking up fiscal stimulus to revitalise the faltering economy, announcing on Friday that it will sharply increase funding from ultra-long dated treasury bonds in 2025 to spur business investment and consumer-boosting initiatives.

Also, its central bank said on Friday it will cut banks’ reserve requirement ratio and interest rates at a proper time.

Last year, slowing economic growth and a transition to cleaner fuels in its transport sector weighed on crude imports and fuel demand in China, the world’s largest oil importer and No. 2 consumer.

On supply, Goldman Sachs expects Iran’s production and exports to fall by the second quarter as a result of expected policy changes and tighter sanctions from the administration of incoming US president Donald Trump.

Output at the Opec producer could drop by 300,000 barrels per day to 3.25-million bpd by second quarter, they said.

The US oil rig count, an indicator of future output, fell by one to 482 last week, a weekly report from energy services firm Baker Hughes showed on Friday.

Reuters

subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.