Brent oil up 1% on short covering

By FXStreet FXStreet (Mumbai) – Brent oil futures advanced 1% following a sharp sell-off on Monday that took prices to 6-1/2 year low of USD 40.60/barrel.

At the time of writing, Brent Jan futures were up 1.5% or 61 cents at USD 41.34/barrel. Prices are still well below the previous 2015 low of USD 42.22/barrel.

Prices ticked higher after the data from China showed a rise in commodity imports. China’s crude oil imports for the first 11 months of the year rose 8.7% to 6.61 million barrels per day, with November crude imports growing 7.6% in annualised terms.

However, global oversupplies and OPEC’s reluctance to cut output in order to support prices is capping gains in oil prices.
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Source:: FX Street