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Oil prices surge following data on production growth in China

Oil prices surge following data on production growth in China

On Monday, oil prices are climbing amid expectations for a recovery in Chinese production and reduced supplies from OPEC+.

Brent crude futures have risen by 0.31%, reaching $87.27 a barrel. Futures for May on U.S. crude, WTI, increased by 0.36%, to $83.47 a barrel.

Both oil benchmarks recorded a weekly gain of 2.4% and 3.2%, respectively, last week. They also posted their third consecutive monthly rise, buoyed by statements from OPEC countries and their allies about their intention to extend production cuts until the end of June.

Additionally, Ukraine continues to attack Russian oil refineries with drones, diminishing their capacity to transfer oil products for export. Russian supplies dropped by 1 million barrels, affecting the reduction in fuel oil production at refineries in India and China.

"Oil demand will strengthen in the second quarter of 2024 amid geopolitical risks reducing supply prospects," analysts at Energy Aspects explained in a note to clients.

Demand for oil products in European countries is rising: in February, consumption increased by 100,000 barrels per day despite forecasts of a reduction in 2024 by 200,000 barrels per day.

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