Crude oil prices were climbing this morning (August 23rd) as Chinese equities rallied on the back of stronger-than expected earnings reports.
Prices slumped to their lowest level in six weeks on the New York Mercantile Exchange last week, driven lower by weak employment data in the US, but China's equity rally has provided support for both crude and heating oil this morning.
By the time European markets opened, the October-delivery crude contract had reached a high of $74.30 a barrel, but gains were beginning to ease as traders once more shifted focus to uncertainty in European and US markets.
Speaking to Bloomberg, Neil Beveridge, an analyst at Sanford C Bernstein & Co in Hong Kong, said crude prices will be heavily affected by signs of growth in emerging markets.
"Going into next year, we’ll see higher crude prices coming through on the back of stronger demand growth from emerging markets and weakening of global supply," he forecast.
