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TOKYO (Reuters) – Crude prices rose on Monday, bolstering gains in the US session on better than expected US employment data, although gains were tempered by long-term war worries. between Canada and the United States.
Brent future
"A very cautious opening this morning backed by better than expected (non-farm payroll)," said Stephen Innes, managing partner at Vanguard Markets in Bangkok. "Traders remain incredibly cautious about the weaker global economic overhang."
Both oil indicators fell last week, with worries over the slowdown in the global economy outweighing the risks badociated with supply. Brent fell more than 3% and WTI paid more than 1.5%.
US job growth rebounded sharply in June, as the government's payroll rose, a tightly monitored employment report said Friday, suggesting that the sharp slowdown in hiring in May was likely to be punctual.
Employers added 224,000 jobs last month, the highest number in five months, the report said.
But the US-China trade war has weakened prospects for global economic growth and oil demand.
The lack of concrete progress in resolving the acrimonious trade war between the United States and China, however, means that the bar could be very difficult for the US Federal Reserve not to reduce its borrowing costs at its political meeting July 30th and 31st.
White House economic adviser Larry Kudlow confirmed that senior officials from the United States and China will meet in the coming week to continue trade negotiations.
Still, Japanese core machinery orders fell for the first time in May, the biggest monthly drop in eight months, a worrying sign that global trade tensions are weighing heavily on business investment.
Oil received support because of latent tensions on Iran and after an extension last week of cuts in production of OPEC and his allies.
(Report by Aaron Sheldrick, edited by Richard Pullin)
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