Oil rises despite concerns on China’s economy

Oil drilling rigs

Oil rose today, Nov. 9, as inflation rates declined in China, indicating the possibility of a contraction in the world's second largest economy, and, thus, affecting the global demand for oil.

International benchmark Brent crude was trading up 0.3% at $79.78 a barrel, at 09:05 am Makkah time. The contract is at the lowest level since July 20.

West Texas Intermediate (WTI) crude rose 0.29% to $75.55 a barrel.

Official Chinese data, released today, showed that consumer price inflation in the country fell by 0.2% in October on an annual basis, while producer price inflation fell by 2.6% last month.

Charu Chanana, Market Strategist at Saxo Capital Markets, said that concerns about demand are currently underpinning market sentiment, Bloomberg reported.

“Macro data both out of the US and China, as well as the EIA inventory data, will be key in the near term to assess the impact of high interest rates on oil demand,” Chanana added.