Oil Rises on Positive China Data Amid Uncertain Israel Lebanon Ceasefire
OIL & GAS

Oil Rises on Positive China Data Amid Uncertain Israel Lebanon Ceasefire

Oil prices increased on Monday, supported by positive factory activity in China, the world's second-largest oil consumer, and by rising tensions in the Middle East as Israel resumed attacks on Lebanon despite a ceasefire agreement.

Brent crude futures rose by 8 cents, or 0.1 per cent, to $71.92 a barrel by 0107 GMT, while US West Texas Intermediate crude climbed 9 cents, or 0.1 per cent, to $68.09 a barrel.

Prices rose following an official survey that revealed China's factory activity had expanded modestly for the second consecutive month in November, suggesting that stimulus efforts were finally starting to have an effect, coinciding with an increase in trade threats from Donald Trump.

Tony Sycamore, a market analyst at IG based in Sydney, noted that the positive data from China was helping oil prices but added that concerns over the stability of the Israel-Lebanon ceasefire were also contributing to the price rise.

The ceasefire, which had been implemented between Israel and Lebanon on Wednesday, was already under strain, with both sides accusing each other of violating the agreement.

The Lebanese Health Ministry reported that several people had been wounded in two Israeli airstrikes in southern Lebanon. Meanwhile, airstrikes intensified in Syria, with President Bashar al-Assad pledging to defeat insurgents who had entered Aleppo.

Both Brent and US crude benchmarks experienced a decline of more than 3 percent last week, as concerns over supply risks from the Israel-Hezbollah conflict eased and forecasts pointed to a surplus in supply for 2025, despite expectations that OPEC+ would extend its output cuts.

OPEC+ delayed its meeting to Dec 5, where discussions were underway regarding the postponement of an oil output increase scheduled for January. This meeting would determine policy for the early months of 2025.

Sycamore explained that extending the output cuts would give OPEC+ more time to assess the effects of Trump's policy announcements on tariffs and energy, as well as to observe China's response.

A Reuters monthly oil price poll showed that Brent crude was expected to average $74.53 per barrel in 2025, as economic weakness in China clouded the demand outlook, and ample global supplies were expected to outweigh support from a delay in the planned OPEC+ output hike.

Oil prices increased on Monday, supported by positive factory activity in China, the world's second-largest oil consumer, and by rising tensions in the Middle East as Israel resumed attacks on Lebanon despite a ceasefire agreement. Brent crude futures rose by 8 cents, or 0.1 per cent, to $71.92 a barrel by 0107 GMT, while US West Texas Intermediate crude climbed 9 cents, or 0.1 per cent, to $68.09 a barrel. Prices rose following an official survey that revealed China's factory activity had expanded modestly for the second consecutive month in November, suggesting that stimulus efforts were finally starting to have an effect, coinciding with an increase in trade threats from Donald Trump. Tony Sycamore, a market analyst at IG based in Sydney, noted that the positive data from China was helping oil prices but added that concerns over the stability of the Israel-Lebanon ceasefire were also contributing to the price rise. The ceasefire, which had been implemented between Israel and Lebanon on Wednesday, was already under strain, with both sides accusing each other of violating the agreement. The Lebanese Health Ministry reported that several people had been wounded in two Israeli airstrikes in southern Lebanon. Meanwhile, airstrikes intensified in Syria, with President Bashar al-Assad pledging to defeat insurgents who had entered Aleppo. Both Brent and US crude benchmarks experienced a decline of more than 3 percent last week, as concerns over supply risks from the Israel-Hezbollah conflict eased and forecasts pointed to a surplus in supply for 2025, despite expectations that OPEC+ would extend its output cuts. OPEC+ delayed its meeting to Dec 5, where discussions were underway regarding the postponement of an oil output increase scheduled for January. This meeting would determine policy for the early months of 2025. Sycamore explained that extending the output cuts would give OPEC+ more time to assess the effects of Trump's policy announcements on tariffs and energy, as well as to observe China's response. A Reuters monthly oil price poll showed that Brent crude was expected to average $74.53 per barrel in 2025, as economic weakness in China clouded the demand outlook, and ample global supplies were expected to outweigh support from a delay in the planned OPEC+ output hike.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?