Oil prices steadied near a six-week low as positive economic data from China eased concerns about demand in the world’s biggest importer, ahead of an OPEC meeting this week.
Brent crude traded above $81 a barrel after falling 1.5% on Friday, marking a third consecutive weekly drop. West Texas Intermediate hovered near $77. Industrial profits in China’s manufacturing sector grew at a faster year-on-year pace in June compared to May, demonstrating the resilience of the sector.
Crude prices remain modestly higher this year, supported by OPEC’s supply discipline and expectations that the Federal Reserve is moving closer to lowering borrowing costs. The U.S. central bank’s interest rate decision is due on Wednesday. The Organization of the Petroleum Exporting Countries and its allies will meet a day later, with market opinions divided on whether the group will alter production levels.
Traders are also closely watching developments in the Middle East. On Sunday, Israel attacked Hezbollah targets and threatened further retaliation for an earlier rocket strike that killed 12 children. Despite the tensions, Israel signaled openness to a proposed truce in Gaza.