Crude Oil rose on Metatrader, recouping part of the biggest loss in eight months, on signs that U.S. fuel stockpiles are shrinking and speculation that China’s economy will continue to drive oil demand.
Futures gained as much as 1 percent after declining 4.3 percent yesterday, the biggest drop since Feb. 4. An unexpected rate hike yesterday by the Chinese central bank may lure more capital to the country as investors seek better returns.
The U.S. Energy Department may show gasoline stockpiles fell 1.5 million barrels.
The November contract, which expires today, climbed 81 cents to $80.32 a barrel in electronic trading on the New York Mercantile Exchange at 12:31 p.m. Singapore time. Yesterday it fell $3.59 to $79.49.
The more-actively traded December contract rose 79 cents, or 1 percent, to $80.95. Futures are up 1.2 percent this year.
China’s central bank yesterday raised borrowing costs for the first time since 2007, lifting the benchmark one-year lending rate to 5.56 percent from 5.31 percent. The move came to slow gains in property prices and curb lending by banks.
Steps taken by the government earlier this year to slow China’s economy haven’t impacted oil and fuel demand. The country’s crude imports climbed to a record 23.29 million metric tons in September, passing the previous high set in June.