Brent crude rose today, mainly driven by a revival in outlook for demand after South Korea encouraged incentives for non-Middle East oil imports.
Brent crude rose by 47 cents to $103.71 a barrel, while US oil edged up 56 cents to $93.87, reported Reuters.
Prices received some support from the American Petroleum Institute’s data, which showed a sudden 7.8-million-barrel drop in crude stocks, against a prediction for a drop of 400,000 barrels.
Investors will now keep a close eye on data from the Energy Information Administration (EIA) to get a clearer picture of the demand outlook for the world’s biggest economy.
The US nonfarm payrolls data is likely to influence the dollar, which dropped to a one-month low of 82.428 on Monday, due to disappointing manufacturing data.
On Wednesday, payrolls processor ADP is expected to publish a report which will provide an insight into Friday’s labour report.
Oil also received some more support after South Korea boosted incentives for crude imports from non-Middle East regions.
The country’s latest decision is anticipated to increase demand for crudes priced off Brent, as it tries to reduce its dependence on Middle East suppliers.
Image: Prices received a boost after South Korea encouraged incentives for crude imports from non-Middle East regions. Photo courtesy of freedigitalphotos.