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Brent crude’s value increased today and stayed at more than $109 a barrel, as September’s oil demand in China showed signs of decline, even offsetting the strong GDP growth that the country posted for Q3.

Brent crude gained 15 cents to settle at $109.26 a barrel, while US crude oil slipped slightly by two cents to stay at $100.65, reported Reuters.

The economy of the world’s largest oil consumer grew very fast during the July to September quarter, posting a 7.8% rise.

Although the economic growth is in line with expectations, the decrease in exports in September and unpredictable global developments were observed to be indicating a less promising outlook for the fourth quarter.

Oil demand slipped by 1.8% in China for the first time in 17 months, owing to crude run cuts and maintenance works at refiners in the country.

Prices also got support from a weak US dollar, which is trading at an eight-and-a-half month low against the euro and some other currencies.

"The economy of the world’s largest oil consumer grew very fast during the July to September quarter, posting a 7.8% rise."

Current political deadlock in the US over the debt ceiling is expected to stop the Federal Reserve from rolling back its stimulus.

Foreign exchange traders believe the impact of this month’s political impasse in the US over the debt ceiling will prevent the Federal Reserve from scaling back its monetary stimulus.


Image: Mixed developments in China pushed Brent. Photo courtesy of Ecow.

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