homemarket Newscommodities NewsCrude oil prices surge to 9 month high amid supply cuts and China's economic recovery, expert insights

Crude oil prices surge to 9-month high amid supply cuts and China's economic recovery, expert insights

Crude oil prices have hit a 9 month high on expectations of additional supply cuts by major oil producers like Saudi Arabia and Russia. The prices have surged by 7 percent in the past one week alone and about 25 percent so far this year. China's signs of economic recovery have also given a boost to crude.

By Manisha Gupta  Sept 5, 2023 4:58:33 PM IST (Published)

2 Min Read
Crude oil prices have hit a 9-month high on expectations of additional supply cuts by major oil producers like Saudi Arabia and Russia. The prices have surged by 7 percent in the past week alone and about 25 percent so far this year. China's signs of economic recovery have also given a boost to crude.
Ole Hansen, head of commodity strategy at Saxo Bank, shared his insights on the current situation in an interview with CNBC-TV18. He emphasised, "The cuts from Saudi Arabia and also from Russia are certainly the main driver for the sentiment right now. Also, the demand from China is not showing any signs of peaking at this point. So, the demand outlook remains strong as well."

China's economic activity has long been a bellwether for the global commodity markets, and crude oil is no exception. Jonathan Barratt, chief investment officer at Probis Securities, highlighted the importance of China's role in shaping the crude oil landscape.