China’s positive data and geopolitical risks support oil prices – London Business News | Londonlovesbusiness.com

Oil prices saw an increase, supported by positive manufacturing data from China and escalating geopolitical tensions in the Middle East.

China’s factory activity expanded at its fastest pace in five months, driven by recent government stimulus measures. This suggests potential stability in oil demand from one of the world’s largest consumers, offering a cautiously bullish outlook for global crude prices in the near term.

If China’s economic recovery continues, it may help sustain demand. On the geopolitical front, while the Israel-Lebanon ceasefire remains fragile, growing tensions in Syria pose risks of supply disruptions, further supporting crude prices in the medium term.

Despite a positive start to the week for oil, both Brent and WTI crude benchmarks declined last week, largely due to diminishing concerns over supply risks and forecasts of a surplus of oil in 2025. OPEC+ is expected to extend its output cuts at the December 5 meeting, which could help stabilize the market. Attention will be on the potential delay of the planned production hike, as an indefinite delay could alleviate downward pressure on prices.