Oil Prices Rise Despite More Signs of Slowing Global Economy, Brexit Uncertainty
Published Jan 16, 2019 01:33AM ET
Investing.com - Oil prices rose on Wednesday in Asia as China took fresh measures to stimulate its economy as it struggles with the threat of an escalating trade war with the U.S.
The People's Bank of China injected over $84 billion into the banking system - a record daily net cash injection - to support domestic liquidity, a day after announcing a range of tax cuts and a reduction in banks' reserve requirements. The development came as Ren Hongbin, an assistant minister at China’s commerce ministry, told a news conference that China's trade faces rising uncertainties this year.
China is the world's largest oil importer.
Elsewhere, there was further evidence of the impact of the U.S.-China trade dispute spreading to the global economy, as Japan’s core machinery orders in November dropped sharply.
Oil markets had earlier shrugged off the decision by British lawmakers on Tuesday to reject Prime Minister Theresa May's deal to leave the European Union.
The House of Commons voted 432 versus 202 against Prime Minister May’s Brexit Deal. Following the defeat, May now faces a confidence vote in Parliament later today.
Despite the reports, the Crude Oil WTI Futures gained 0.1% to $52.16 while the Brent Oil Futures also rose 0.2% to $60.75.
In other news, U.S. crude oil output is expected to jump to a record of more than 12 million barrels per day (bpd) in 2019 and to climb to nearly 13 million bpd in 2020, the U.S. Energy Information Administration said on Tuesday.
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Written By: Investing.com
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