Oil prices start the week with a win for positive China data

The crude oil prices began this week with a profit that was strengthened by the recent economic update from China, which showed that the production activity in February was expanded by the fastest in three months, which indicates a light demand outlook.

At the time of writing, Brent Rohs acted at $ 73.11 per barrel, whereby West Texas intermediate was moderately completed by Friday at 70.07 USD per barrel.

The China's shopping manager index for February rose from 49.1 in January to 50.2 and triggered optimism through oil demand, especially when the reading of the analyst expectations, which were more modest, was 49.9. Readings over 50 show an expansion, while under 50 indicate a contraction in activity.

According to Reuters, the collision between President Trump and President Zelensky from Ukraine last Friday continued the prospect of a peace agreement for the Eastern European country than a week earlier. On the other hand, the publication wrote, the show of solidarity behind Zelensky showed a positive sign of the oil markets from European managers this weekend.

“It is unclear where the United States is now and a peace agreement appear more far away than a week ago. This changes the energy market hope to a loosening of sanctions, ”said analysts today in a note. “The shift in expectations is reflected in the oil campaign in the early morning for oil, whereby Brent rose by more than 1% at the time of writing.”

Regardless of this, oil dealers have put the potential entry into the effectiveness of US tariffs for Canadian and Mexican imports, including oil.

In other bullish news, the latest Ukrainian drone attack on a Russian refinery has expanded doubts about the stability of the fuel supply from Russia to international markets.

By Irina Slav for Oilprice.com

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