By: Mahmoud Gamal

Kuwait – Mubasher: Global oil prices were up on Tuesday, after plunging to their lowest levels in six-and-a-half years, as buying resumed backed by news of a decline in US oil supply and attempts to boost the Chinese economy.

US oil supply did not meet expectations of growth and fell 7.3 million barrels to a total of 449.3 million barrels by the end of the week ended 21 August. This prompted an increase in US crude by $1.40 per barrel (pb) or 3.66% to $39.64 pb.

Meanwhile, Brent crude added $0.52 and reached $43.21 on Tuesday.

On another note, China reduced its interest rates and its reserves in local banks to boost its economy.

The new rise in oil prices, following the recent slide, comes after China’s announcement of taking steps to boost its economy and after a decline in US crude supply, said oil and economy analyst Ahmed Hassan Karam.

China is the second largest oil consumer in the world, after the US, and weakening the Yuan is likely to reduce Beijing’s ability to import goods.

Karam told Mubasher that reducing the value of the Yuan will have a major role in halting the slowing growth of the Chinese economy by allowing stronger buying of Chinese goods, which will raise demand for oil.

On another note, gold prices extended their retreat, falling 1.3% to $1,139.45 per ounce. The US dollar increased 1% against other major global currencies.

Translated by: Nada Adel Sobhi