China PMI Sends Bullish Signal to Oil Market

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Manufacturing activity in China saw its first expansion in six months, adding upward pressure to oil prices.

China’s latest economic update has added a fresh note of bullishness to oil markets, as it showed the first expansion in manufacturing activity in six months. The purchasing managers’ index reading for March stood at 50.8, up from 49.1 for February, Reuters reported, adding that export orders increased as well.

Among the factors driving them up, besides OPEC cuts, is a Russian supply decline as the country says it will not focus on reducing oil production rather than exports as it did in previous months in a mix of reductions per the OPEC agreement.

 

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