Oil prices are rising on Tuesday thanks to China’s announced measures to support the real estate market, whose problems continue to hold back the country’s economic growth.
The People’s Bank of China (Central Bank) will expand its program to support developers, including encouraging banks to extend loans to representatives of the sector to complete housing projects, Market Watch reports.
The attention of traders this week is directed to the data on the dynamics of consumer prices in the U.S. for June, as well as monthly reports of OPEC and the International Energy Agency (IEA).
The cost of September Brent crude futures on the London-based ICE Futures exchange by 8:20 Moscow time on Tuesday is $78.08 per barrel, up $0.39 (0.50%) from the previous session’s closing price. On Monday, these contracts fell $0.78 (1%) to $77.69 per barrel.
The price of WTI oil futures for August at the electronic trading of the New York Mercantile Exchange (NYMEX) increased by $0.41 (0.56%) to $73.4 per barrel. The previous day, the value of these contracts fell by $0.87 (1.2%), to $72.99 per barrel.
“New stimulus for the Chinese real estate market is supporting the oil market,” said Warren Patterson, who is in charge of commodities strategy at ING Groep NV. – U.S. inflation data to be released on Wednesday could determine the market’s direction in the short term as it will show what to expect from the Fed in the coming months.”
