Chinese oil companies rally as oil price climb as recession fears start to fade
Chinese oil companies rally as oil price climb as recession fears start to fade

Chinese oil companies rally as oil price climb as recession fears start to fade

 

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Shares of Chinese oil companies stage a strong rally in Hong Kong and mainland China. CNOOC is surging more than 6% in Hong Kong, Sinopec up more than 5% and PetroChina up 4.4%. In the A-share market, an index tracking oil and gas companies compiled by Wind Information jumped by 4.9%, making it the best-performing sector.

The rally came as oil prices rise on Monday as as fears of a recession in the US, which drove prices down for three straight weeks for the first time since November, started receding. 

Fears that the US banking crisis will slow the economy and sap fuel demand in the world’s biggest oil consuming nation drove the Brent benchmark down 5.3% last week, while WTI plunged 7.1%. However a healthy US jobs report for April, a weaker dollar, and expectations of supply cuts at the next meeting of the OPEC+ in June helped the benchmarks rebound about 4% each on Friday.

China oil