Oil rises due to firm yuan, expectations of more OPEC cuts
Oil jumped more than $1 a barrel on Thursday due to expectations that falling prices may lead to production cuts, coupled with a steadying of the yuan currency after a week of turmoil spurred by an escalation of US-China trade tensions.
Brent crude had rebounded to $57.57, up $1.34 or 2.4 per cent, by 0844 GMT. US West Texas Intermediate (WTI) crude futures jumped $1.49, or 2.9 per cent, to $52.58 a barrel.
China’s yuan strengthened against the dollar and its exports unexpectedly returned to growth in July on improved global demand despite US trade pressure.
“Brent and WTI were rebounding on the combination of a stronger-than-expected official fix in the yuan, alleviating currency war fears,” said Harry Tchilinguirian, global oil strategist at BNP Paribas in London.
