Futures on US West Texas Intermediate Crude Oil edged higher on Monday after China announced measures to prop up stuttering economic recovery.
The country halved stamp duty on stock trades effective August 28th, which provided certain support to oil prices early during Monday’s session.
However, “after last week’s modest (Chinese central bank interest) rate cut, the announcements above amount to another piecemeal measure that won’t alter investor gloom towards China,” Tony Sycamore, market analyst at IG, was quoted as saying by Reuters.
Chinese manufacturing purchasing managers’ index data due out later in the week will be closely watched for more clues on overall activity.
WTI Crude Futures registered their second straight week of losses after Fed Chair Jerome Powell said further rate increases might be needed to bring inflation back down to target.
Despite Fed hawkishness, according to CMC Markets analyst Tina Teng, the possibility of a soft landing for the US economy underpinned energy markets at the start of the week.
Meanwhile, the latest Baker Hughes report showed US energy companies had reduced the number of active oil rigs for a ninth straight month in August.
In other news, Tropical Storm Idalia in the Caribbean could transform into a hurricane as it is heading toward Florida. Yet, it is forecast to miss oil and gas facilities in the Gulf.
As of 9:34 GMT on Monday WTI Crude Oil Futures for October delivery were edging up 0.46% to trade at $80.20 per barrel.
At the same time, Brent Oil Futures for November delivery were edging up 0.36% on the day to trade at $84.25 per barrel.
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