Oil prices increase after China takes action to support the economy

28 Aug 2023 , 09:59 AM

After China took action to support its struggling economy, oil prices and equity markets edged up on Monday. However, investors remained concerned about the rate of growth and potential impact of future U.S. interest rate hikes on fuel demand.

Brent crude had increased by 22 cents, or 0.3%, to $84.70 per barrel, while U.S. West Texas Intermediate crude had increased by 25 cents, or 0.3%, to $80.08 per barrel.

After Fed Chair Jerome Powell suggested the U.S. central bank may need to hike rates further to slow still-too-high inflation, Brent and WTI registered a second week of losses on Friday.

However, declining oil stocks and supply curbs from the OPEC+ group of oil producers kept oil prices above $80 per barrel.

According to Baker Hughes’ research, energy companies decreased the number of operating oil rigs in the United States for a ninth consecutive month in August.

Idalia, a tropical storm that has developed in the Caribbean and may intensify into a hurricane before making landfall in Florida.

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