Oil prices rose during Monday’s trading session, as the price of Brent crude jumped to its highest level in five months, supported by Chinese data, as well as cuts in oil supplies from Abu Dhabi.
Brent crude reached its highest level in five months at $46.50 a barrel, after opening today's trading at the level of $45.77 a barrel. US crude recorded its highest level today at $43.54 a barrel, and it had opened today's trading at $42.92 a barrel.
The Abu Dhabi National Oil Company (ADNOC) informed its customers on Monday that it will reduce October's oil supply by 30%, up from 5% in September, as per the UAE government directive to fulfill its obligations under the latest OPEC+ agreement.
With the gradual recovery of demand in global markets, this will support price levels with the decline in oil supply, in light of OPEC cuts.
Also, support for crude oil prices came from the storm that struck the Gulf of Mexico and caused the closure of many offshore platforms, which affected oil supplies.
Today, China announced positive data regarding its business sector, and despite a slight decline in the performance of the manufacturing sector at the level of 51 from the previous reading of 51.1, the performance of the sector remained positive above the level of 50, which separates growth from contraction.
Improved Chinese data
helped restore confidence and appetite for risk by investors, which was
reflected in the performance of stock indices, in addition to the decline in
the levels of the US dollar, which helped push up crude prices.