Crude oil prices soar as major producers cut output

WTI crude futures rose past $82 per barrel on Monday, extending gains for the third session underpinned by factors including supply constraints and a halt in dollar’s upward momentum, while persisting struggles within China’s economy cast a shadow on the market sentiment.

Output cuts from OPEC+ majors Saudi Arabia and Russia have been boosting oil prices since June and the latest data showed US crude inventories shrunk to their lowest levels since January.

Meanwhile, China’s central bank urged banks to increase lending in a bid to shore up the economy but Chinese banks opted for a smaller-than-anticipated reduction in their benchmark lending rate on Monday, and they refrained from adjusting the reference rate for mortgages.

Caution among traders is anticipated to endure as all eyes turn toward the upcoming annual Jackson Hole symposium, where further clues regarding the trajectory of interest rates are eagerly awaited.

Trading Economics

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