Crude oil prices rally in early Friday trading after analysis suggests Chinese economy doing better than thought. Photo by Stephen Shaver/UPI |
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NEW YORK, Oct. 16 (UPI) -- Indications the Chinese economy may be bigger than expected, and Beijing pledges to ease poverty, helped lift crude oil prices in early Friday trading.
Crude oil prices started Friday on a high note, following a steady string of indications suggesting markets were still favoring the supply side because of weak economic growth. A series of crashes on the Chinese stock market and government efforts to stave off further declines dragged heavily on crude oil markets in late summer 2015.
A report on the Chinese economy from National Australia Bank suggested Beijing was relying on outdated methodology to gauge its momentum. Using 2008 methods adopted by most advanced economies, rather than a 1993 system, NAB said economic momentum is in "stark contrast" to most forecasts of a Chinese decline.
Brent crude oil climbed 0.7 percent in early trading to start the day at $50.33 per barrel. West Texas Intermediate, the U.S. benchmark price for crude oil, moved up 1.7 percent to $47.07 per barrel.
At an economic development forum in Beijing, Chinese President Xi Jinping said he'd strive to lift an estimated 70 million people above the poverty line by the end of the decade.
Friday's rally may be short lived, however. Crude oil prices have fluctuated on metrics in the exploration and production side of the energy sector, figures reflected in weekly data provided by oil services company Baker Hughes. Rival Schlumberger said late Thursday it expected the weak oil economy to drag into early 2016.
Inflationary risks may add to crude oil market concerns. Eurostat, the statistical office of the European Union, reported an annual inflation rate for September at -0.1 percent, down from the 0.1 percent reported in August.
