Oil prices rose on Tuesday, supported by bullish economic data from China, the world's largest oil importer and the depreciation of the US dollar.
International benchmark Brent crude traded at $86.47 per barrel at 10 a.m. local time (0700 GMT), a 0.30% rise from the latest closing price of $86.21 per barrel on Monday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $82.66 per barrel, up 0.18% from Monday’s session close of $82.51 per barrel.
China's unexpected interest rate decrease raised hopes that the country would resume its economic recovery in the post-Covid period. China reduced lending to some financial organizations by 15 basis points.
High oil consumption in the summer provided evidence of some economic recovery, as did a 17.4% increase in refinery output in July compared to the same month last year.
Since the US dollar lost 0.13% of its value against other currencies, dollar-denominated oil became less expensive for buyers using other currencies, resulting in more purchases and higher prices.
Furthermore, data showing faster than expected economic growth in the April-June period in Japan, the second-largest economy in the region, also supported upward price movements.