Oil stays strong in Europe, but China caps gains

By FXStreet FXStreet (Mumbai) – Oil ticked higher in Asia and remain positive in Europe, with the upside being capped by weak imports data from China.

At the time of writing, WTI oil futures were up 26 cents or 0.59% at USD 44.55/barrel. Brent oil was up 33 cents or 0.73% at USD 48.53/barrel.

Prices received a boost in Asia from the correction in the US dollar. The bullish move was also driven by Industry group Baker Hughes report released on Friday, which showed the count of US drilling oil-rig has declined for ten consecutive weeks.

However, the gains remain capped as China’s General Administration of Customs said that in October, China’s crude import dropped 5.7% from a month earlier. Annualised imports rose 9.4%, but the month-on-month drop and the drop in the overall imports in October – 18.8% fall from a year earlier – made sure the gains in the oil prices remain capped.
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Source:: FX Street