Oil Prices Rise as China Cuts Interest Rates

Energy Investing

Oil prices saw a surprising gain on Friday after China cut interest rate fueling hope that the country may look to increase its demand.

Oil prices saw a surprising gain on Friday after China cut interest rate fueling hope that the country may look to increase its demand.

According to the Wall Street Journal:

A stimulus for the Chinese economy is something that gets macroeconomic investors to buy all kinds of commodities, oil included, said Andrew Lebow, senior vice president for energy derivatives at Jefferies Bache LLC. With lower interest rates, the Chinese could spend freely enough to support 100,000 barrels of oil demand growth in 2015 in a best-case scenario, he said.

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