Brent crude rebounded after a two-day decline before trade data from China, the world’s second-biggest oil consumer.
Futures rose as much as 1 percent in London. Chinese imports and exports probably dropped in August, according to Bloomberg estimates before data Tuesday from the General Administration of Customs. Sanctions on Iran will probably be lifted within the first three months of 2016, according to four western diplomats familiar with the nuclear monitoring process.
Oil has fluctuated the past three weeks as concerns over slowing demand in China fueled volatility in global markets. Prices are down almost 30 percent from this year’s closing peak in May amid signs the global glut will persist. Iran has signaled it will boost output once sanctions are removed as the nation seeks to regain market share while U.S. crude stockpiles remain about 100 million barrels above the five-year seasonal average.
“China’s trade data will be a potentially significant figure for world growth and demand outlooks,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “Volatility is persisting at the moment.”
Brent for October settlement climbed as much as 49 cents to $48.12 a barrel on the London-based ICE Futures Europe exchange and was at $47.85 at 11:31 a.m. Sydney time. The contract lost $1.98, or 4 percent, to $47.63 on Monday. The European benchmark crude ended the Friday session at a premium of $3.56 to West Texas Intermediate, the U.S. marker grade.
WTI for October delivery fell as much as $1.91 to $44.14 a barrel from the Sept. 4 close on the New York Mercantile Exchange. All electronic transactions Monday will be booked with Tuesday’s for settlement purposes because of the Labor Day holiday.
Recommended for you
