After sliding for approximately 2% on Friday, the prices of oil managed to rebound on Monday due to traders’ expectations that Saudi Arabia would continue to cut its oil production in order to boost prices. In addition, the number of drilling rigs in the United States decreased.
The United States West Texas Intermediate traded at $49.48 a barrel which was up by 0.4% or 19 cents from its last settlement. The international benchmark, Brent crude futures, traded at $55. 78 per barrel, 0.3$ or 16 cents higher compared to the previous session.
The rise in oil prices took place thanks to analysts’ belief that Saudi would be willing to help the market by limiting production to prevent prices from falling further. In accordance to this, Shane Channel, equity and derivatives adviser at ASR Wealth Advisers, said that Saudi would most likely continue to support the oil market, particularly until the sale of Saudi Aramco was completed.
On Monday after last week’s week-long National Day holiday in China, the yuan was able to gain strength vs. its American counterpart. Investors are now waiting for the national leadership meeting which will be held next week
According to the HKEX Global CNH index, the Chinese yuan held strong at 95.87, which was a lot better than its previous settlement of 95.61. In addition, the yuan was seen climbing by 0.13% closing at 6.6265 a dollar. Based on the dollar index, the greenback fell to 93.756 from its previous position of 93.8.