Oil prices rise on positive China data; The OPEC meeting is anticipated by Investing.com

Investing.com– Oil prices fell sharply in Asian trade on Monday following some positive economic readings from exporter China, with the focus on the upcoming OPEC+ meeting for more information on supplies.

A lower buying rate also helped crude’s gains, after last week’s heavy losses on signs of easing tensions in the Middle East. But the recent ceasefire between Israel and Hezbollah has shown signs of strain after both sides accused each other of violating the ceasefire.

Oil also maintained a premium on the risk of worsening tensions between Russia and Ukraine.

Crude oil for February delivery was up 0.3% at $72.02 a barrel, while it was up 0.3% at $67.92 a barrel at 20:16 ET (01:16 GMT).

China’s PMIs show job growth

Purchasing managers’ index data from China showed manufacturing activity at the world’s largest oil exporter continued in November.

Both the data reflected the trend, which comes after Beijing rolled out a series of stimulus measures since late September.

The data raised hopes that economic activity in the country will improve in the coming months amid continued support from Beijing. December is the focus of two important political meetings in China, which are expected to reveal many views on stimulus.

However, optimism about China was dampened by threats of further tariff measures by US President-elect Donald Trump. Trump’s threats have also boosted the dollar, unfairly limiting net gains.

The OPEC+ meeting is awaited for further signs of supply

This week the focus is on the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC+), which is scheduled for Thursday. The meeting was delayed by four days.

The cartel is expected to continue to push back plans to begin ramping up production, amid continued weakness in oil prices and concerns about weak demand next year.

OPEC+ has further cut its demand forecasts for 2024 and 2025, as have other energy market organizations, including the International Energy Agency.