With China’s easing monetary policy, Oil prices reached their highest point in ten months

As a result of China lowering the amount of cash reserves required by banks to help its economic recovery and on expectations that the major cycles of global interest rate hikes were drawing to an end, oil prices reached their highest point in ten months on Friday.

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As of 00:27 GMT, Brent crude increased 46 cents, or 0.5%, to $94.16 while West Texas Intermediate crude (WTI) in the United States increased by 0.6% to $90.74. Both benchmarks' prices were at their highest levels since November.

Increase in Energy and Industrial Metal Prices

Energy and industrial metal prices have generally increased as a result of China's reductions in cash reserve requirements, according to CMC Markets analyst Tina Teng. She also said that later on Friday; market movements could be caused by Chinese statistics on industrial output and retail sales.

Due to persistent supply issues and expectations that the U.S. central bank will keep interest rates steady after Europe hinted that its rate hike on Thursday would be its final one, oil prices are predicted to end the week higher for a third consecutive week.

A slower economy and less demand for oil may result from higher interest rates, which make borrowing more expensive for individuals and businesses.

The trading of oil is gradually gaining popularity on Wall Street. According to OANDA analyst Edward Moya, there is little doubt that the OPEC agreement from the end of last month will keep the oil market highly tight in the fourth quarter.

This Monday, the International Energy Agency announced that due to Saudi Arabia and Russia's protracted oil supply constraints, it expects a market shortfall until the fourth quarter. Prices briefly fell following a dismal report on US stocks, but supply issues quickly pulled them back up.