Oil jumps 4% on positive Chinese economic data

The bleak outlook for the overall global economy has combined with the worries of the trade war to push prices into over the past few days, but today's economic data coming from China has caused oil prices to rise on Wednesday afternoon.

At 1[ads1]2:17 PM EDT traded WTI crude oil at 4.21% for a profit of $ 2, 27 per day, to $ 56.21 per barrel. Crude crude traded at $ 60.68, up 4.15% for a profit of $ 2.42 per barrel.

The reason for the rise in oil prices was favorable economic data which came from a private survey of China's service sector, which showed that in August it grew the fastest in three months, triggering a plethora of hiring activities to support it – the largest increase in employment in the sector in over a year.

China, a major consumer of crude oil, imported 10.64 million bpd in April – a new record fo r China, and H1 imports of NOK represented an increase of 8.8 per cent year over year, or 800,000 bpd. The growth here accounts for almost all world demand growth for the year, so it makes sense that all eyes are on China's economic data as well as the trade war with the United States.

China's August imports of its oil principals PetroChina and Sinopec increased 2.03 percent over July imports, which is greater than the July increase of 1.25 percent. It is largely expected that the two oil prices will treat even more crude this month as refinery maintenance declines.

Oil prices are expected to respond later today also to API's estimate of US crude oil stocks, and again tomorrow on EIA's take on inventories.

By Julianne Geiger for Oilprice.com

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