Oil rises on China plan to boost U.S. imports, OPEC+ compliance
By Laura Sanicola NEW YORK (Reuters) - Oil prices rose on Monday, as OPEC+ producers almost fully complied in July with their global production cut accord, and after U.S.
By Laura Sanicola
NEW YORK (Reuters) - Oil prices rose on Monday, as OPEC+ producers almost fully complied in July with their global production cut accord, and after U.S. officials said China is in compliance with the first phase of the two nations' trade deal.
Brent crude rose 21 cents, or 0.5%, to $45.01 a barrel by 12:43 EDT (1643 GMT), and U.S. West Texas Intermediate crude was up 40 cents, or 1%, to $42.41 a barrel.
Compliance with OPEC+ oil output cuts is seen at around 97% in July, two OPEC+ sources told Reuters. The oil-producing nations have been cutting output by record levels to curb supply and reduce worldwide inventories.
China is living up to its end of the trade deal the two parties signed in January, U.S. President Donald Trump said Monday, even though the nation has fallen short so far of promised purchases of U.S. products. Chinese state-owned oil firms have tentatively booked tankers to transport at least 20 million barrels of U.S. crude for August and September.
Investors are waiting on a ministerial OPEC+ committee, known as the JMMC, on Wednesday that will review the oil market and compliance with the global oil supply reduction pact, although no change in the agreement is expected.
In August, the Organization of the Petroleum Exporting Countries and allies known as OPEC+ eased its agreed cuts to 7.7 million barrels per day (bpd) from 9.7 million bpd previously. Later-dated Brent futures contracts suggest that traders see inventories remaining high in coming months due to weakened demand.
Last week the Energy Information Administration adjusted global oil demand downward, suggesting a smaller than previously expected reduction in global inventories.
"Floating inventory could even begin to increase again as WTI and Brent spread carrying charges expand," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
(Reporting by Laura Sanicola in New York, additional reporting by Bozorgmehr Sharafedin, Florence Tan in Singapore; editing by David Evans and Chizu Nomiyama)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes
The Pulitzer prize winner, who was in Kandahar covering operations against Taliban, was killed when he was riding along with the Afghan Special Forces
Siddiqui had also covered the 2020 Delhi riots, COVID-19 pandemic, Nepal earthquake in 2015 and the protests in Hong Kong
Danish's photographs were not just documentation, but the work of someone who went down to eye-level, as they say in photographic parlance.