SINGAPORE- Oil prices edged up on Monday supported by upbeat factory activity in the world’s second largest oil consumer China and as Israel resumed attacks on Lebanon despite a ceasefire agreement, stoking tensions in the Middle East.
Brent crude futures climbed 8 cents, or 0.1 percent, to $71.92 a barrel while US West Texas Intermediate crude was at $68.09 a barrel, up 9 cents, or 0.1 percent.
Prices rose after an official survey showed that China’s factory activity expanded modestly for a second straight month in November, suggesting a blitz of stimulus is finally trickling through just as Donald Trump ramps up his trade threats.
“China data is helping, but I think it is also coming on concerns the Israel-Lebanon ceasefire may not hold,” IG’s Sydney-based market analyst Tony Sycamore said.
A truce between Israel and Lebanon came into effect on Wednesday but both sides have accused each other of breaching the ceasefire.
The Lebanese Health Ministry said in a statement several people were wounded in two Israeli strikes in south Lebanon. Air strikes also intensified in Syria as President Bashar al-Assad vowed to crush insurgents who had swept into the city of Aleppo. Last week, both benchmarks posted a weekly decline of more than 3 percent, on easing concerns over supply risks from the Israel-Hezbollah conflict and forecasts of surplus supply in 2025 even as OPEC+ is expected to extend output cuts.
