Oil prices rose during thin trading at the beginning of the session in Asian markets as the dollar fell sharply, with investors awaiting data from China to gauge demand in the world's largest crude oil importer. Brent crude futures increased by 85 cents, or 0.9%, to $92.48 a barrel as of 00:19 GMT, recovering from a drop of 6.4% last week. U.S. West Texas Intermediate crude recorded $86.34 a barrel, up 73 cents or 0.9% following a 7.6% decline the previous week.
Tina Ting, an analyst at CMC Markets, stated that oil found support from several factors, including remarks from Chinese President Xi Jinping at the party conference, which confirmed easing policies for the economy, representing a positive sign for demand forecasts. She added that "the outlook for the U.S. dollar index has declined today, also providing an opportunity for a rebound in oil markets." A decline in the dollar makes oil more accessible to holders of other currencies.
China is expected to release trade and economic data this week. Although China's GDP growth in the third quarter may recover compared to the previous quarter, Xi's strict COVID-19 policies have led the world's second-largest economy to face what will likely be its worst annual performance in nearly half a century. Several OPEC+ countries expressed support for the decision to cut production approved earlier this month.
