Oil prices have increased modestly after China strengthened its currency and scrapped the ‘circuit breakers’ mechanism which allows halting of trading when stock prices plummet.
Brent LCOc1 increased 58 cents to $34.32 a barrel, while the US West Texas Intermediate (WTI) CLc1 rose 46 cents at $33.73 a barrel, Reuters reported.
China’s latest decision comes after suffering its shortest ever day of trading.
Stocks in China increased as yuan firmed in early trade following the strengthening of official rate by People’s Bank of China for the first time in nine trading days.
On Thursday, oil prices plunged to 12-year lows after China allowed its currency to slip.
Following this, Beijing suspended equities trading as the decline triggered the circuit-breaking mechanism for a second time since it is introduced.
The world has been producing 1.5 million more barrels per day over the past year than demand.
In 2016, OPEC and the International Energy Agency expect a fall in global demand growth to around 1.25 million barrels per day from 1.8 million bpd last year.
Image: The US WTI CLc1 rose 46 cents at $33.73 a barrel. Photo: courtesy of Michelle Meiklejohn/ FreeDigitalPhotos.net.