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.

"The world has been producing 1.5 million more barrels per day over the past year than demand."

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.