Crude prices rose on Tuesday, boosted by China’s latest stimulus measures and reports of falling oil production from Opec and the United States, dealers said.
The US benchmark West Texas Intermediate for delivery in April climbed 52 cents to stand at US$36.84 per barrel late afternoon UAE time.
In London, Brent North Sea crude for May advanced 29 cents to $36.86 per barrel compared with Monday’s close.
Sentiment was boosted further by China’s decision on Monday to slash the so-called reserve requirement ratio (RRR) for banks, freeing up additional funds for lending.
The move stoked expectations for stronger demand in the world’s largest energy consumer.
“Oil is being supported by the cut in China’s RRR and signs of lower production around the world,” the PVM Oil Associates analyst Tamas Varga told Bloomberg.
“In principle, the cut in RRR should encourage lending, support the economy and therefore oil demand. At the same time, production seems to be slipping in the United States, Mexico and even in Opec.”
Prices had also risen on Monday as oil kingpin Saudi Arabia suggested it was open to a coordinated solution to market volatility while insisting it would not cut production.
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