Oil prices close up more than 3% after China rate cut By Reuters

2023-06-14 00:35:22

© Reuters.

By Stephanie Kelly

NEW YORK (Reuters) – Oil prices rose more than 3% on Tuesday on hopes of rising demand for fuel after China’s central bank lowered its short-term lending rate for the first time in 10 months, boosting the commodity after heavy losses in the previous session.

The rate cut aims to bolster a faltering post-pandemic recovery in the world’s second-largest economy and biggest importer of crude oil.

Crude oil closed up 2.45, or 3.4%, to settle at $74.29 a barrel. US crude gained $2.30, or 3.4%, to end at $69.42 a barrel.

On Monday, oil prices fell about 4%, in part on concerns about the Chinese economy following disappointing economic data last week.