Oil climbs higher on China, Japan rebound, hopes of OPEC+ supply curb | Reuters

Oil climbs higher on China, Japan rebound, hopes of OPEC+ supply curb | Reuters

Oil prices climbed on Monday, recouping some losses from the previous session as hopes that OPEC+ will hold current output curbs offset concerns over weaker fuel demand due to growing coronavirus infections and higher production in Libya.

Figures showing a rebound in the world’s second and third largest economies, China and Japan, also supported prices, along with data that Chinese refineries processed the most crude ever in October on a daily basis.

Brent crude futures for January LCOc1 rose 54 cents, or 1.3%, to $43.32 a barrel by 0723 GMT, while U.S. West Texas Intermediate crude for December CLc1 was at $40.76 a barrel, up 63 cents, or 1.6%.

“Fundamentally China’s numbers do support why oil prices can keep at these levels,” said OCBC economist Howie Lee.