WASHINGTON (dpa-AFX) - Oil prices moved higher on Monday on possible disruptions in supplies due to escalating tensions in the Middle East, and on hopes the Chinese central bank's interest rate cuts will help revive demand from the world's second largest economy.
West Texas Intermediate Crude oil futures for November ended up by $1.34 or about 1.94% at $70.56 a barrel.
Brent crude futures climbed to $74.29 a barrel, gaining $1.23 or about 1.7%.
China reduced its benchmark lending rates by 25 basis points on Monday as the economic growth slowed further amid persistent deflationary pressures.
The People's Bank of China cut its one-year loan prime rate to 3.1% from 3.35%. Likewise, the five-year LPR, the benchmark for mortgage rates, was lowered to 3.6% from 3.85%. The bank had previously lowered the rates by 10 basis points in July.
The announcement was widely expected as PBoC Governor Pan Gongsheng last week said the bank will cut the LPR by 0.2-0.25 percentage points today.
The governor also said that the bank could further cut the reserve requirement ratio by 0.2-0.5 percentage points at appropriate time depending on the market liquidity before the year-end.
On the geopolitical front, Israel carried out more strikes in Beirut and southern Lebanon, including on branches of a bank linked to Hezbollah.
Hezbolla reportedly said it had fired more rockets into Israel on Sunday, targeting miliary bases. Earlier, on Saturday, a Hezbollah drone exploded next to Israeli Prime Minister Benjamin Netanyahu's private home.
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