Crude oil prices are still rising: What are the most important factors?

Oil prices rose in Asian morning trade on Monday, increased by positive Chinese and US economic statistics, as well as anticipation of continued oil supply cuts from major suppliers.

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At 0015 GMT, Brent crude was up 17 cents, or 0.2 percent, to $88.72 per barrel. WTI crude in the United States increased 25 cents, or around 0.3 percent, to $85.80.

The continued price increase comes after both agreements settled at their highest points in more than a half-year last week, ending a two-week losing skid.

On the demand side, statistics from Caixin's manufacturing PMI survey showed that China's manufacturing activity unexpectedly grew in August, leading to fresh optimism about the world's largest oil importer's economic health.

A slew of economic stimulus measures unveiled by Beijing last week, including deposit rate cuts at some of the country's top state-owned banks and a loosening of lending regulations for house purchasers, have also boosted prices.

However, investors are still waiting for more serious steps to support the country's troubled property industry, which has been one of the primary drags on the Chinese economy since its recovery from the epidemic.

On Friday, nonfarm payrolls increased by 187,000 jobs in the United States, above expectations.

Expectations of tightening oil supply have intensified following Russian Deputy Prime Minister Alexander Novak's remarks on Thursday that Russia has reached an agreement with OPEC members on the limits for further export cuts. This week, an official statement with details on the planned reduction is due.

Russia has already stated that it will reduce exports by 300,000 barrels per day (bpd) in September, after a reduction of 500,000 bpd in August. Saudi Arabia is also anticipated to extend a voluntary cut of 1 million bpd until October.

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