The oil prices climb higher on Monday during the European trading session. This was brought to light by the speculations that Oil producers might meet to discuss the possible production freezing. Although we can say that global oversupply concerns continue to weigh on the market sentiment.
According to different source several OPEC members want to bring up the idea of kerbing the pace of drilling in autumn as a way to bring the market back to balance. The Russian Energy Minister Alexander Novak said earlier that Oil producers may not be ready to deal with these question yet, but Russia remains open to collaboration possibilities. Earlier this year, an attempt to reach an accord on limiting production levels collapsed. It was simply because Iran refused the offer completely.
The Oil prices seem to have fell flat on Friday after the Non-Farm Payroll report busted the US labour market fears. The US Labor department reported 255 000 jobs were created in July, beating the median estimate of 180K. Both benchmarks added about 2 percent, WTI rose by 1.94% to 42.60, while LSE traded benchmark Brent gaining 1.83% to $45.09 per barrel. On Friday US Oil fell by 0.3% after the Baker Hughes report showed that the number of oil rigs in the US increased for the sixth week in a row, rekindling concerns of US Oil producers about the global surplus. According to the report, the number of drilling rigs in the US rose the last week from 7 to 381, showing an increase the sixth week in a row and the ninth week of the last ten.
Chinese row of economic data showed that compared to last years Chinese exports and imports fell more than expected in July, by -4.4% and -12.5% respectively. The trade balance in CNY rose to 342.80B while the analysts expected minor change from the previous numbers in June, 311.85B. Local stocks saw modest upturn on the news, CSI 300 was +0.91% at close.
The industrial production in Germany, the main economy of EU rose by 0.5% in June tallying with estimates. The Swiss Consumer inflation data was also positive with YoY CPI falling 0.2%, better than projections.
The Gold extended its decline as investors sought for higher yields dropping to safe heavens, XAU/USD -0.36%, finds support at $1.330 level.
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