Crude oil prices rose during today's trading, supported by improved Chinese factory data, along with a rise in energy demand, as countries eased closures related to the Coronavirus, but traders remained cautious due to tensions between the United States and China.
US crude oil futures were trading, as of 11:07 GMT, at the level of $41.76 a barrel, after opening trading today at the level of $41.53 a barrel, while it recorded the highest level at $41.94.
As for Brent crude, it traded at the level of $44.76 a barrel, and its highest level today was at $44.96 a barrel, while today's trading has opened at $44.61 a barrel.
China's factory prices narrowed contracted in July, driven by rising global oil prices and with industrial activity returning to pre-Coronavirus levels, adding to signs of recovery in the world's second largest economy.
On the other hand, we find that the continued rise in demand for oil slowly, and the decline in oil supply due to the agreement to reduce OPEC + production and very low prices to stimulate strong production growth in the United States, would provide support for crude oil prices in the markets.
Iraq said on Friday that it would reduce oil production by another 400,000 barrels per day in August and September to compensate for the surplus production in the past three months. The move will help it comply with its quota of cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC +.
Caution remains in the markets due to the increasing tensions between the United States and China, which may affect the volume of trade between the two largest oil-consuming countries in the world, which may limit the chances of a rise in crude oil in the short term.