Oil holds near a six-week low with Chinese demand, OPEC in focus

Oil steadied near a six-week low as positive Chinese economic data helped ease concern over demand in the world’s biggest importer, before an OPEC meeting this week.

Brent crude traded above $81 a barrel after falling 1.5% on Friday to notch a third weekly drop, with West Texas Intermediate near $77. Industrial profits in Asia’s largest economy grew at a faster year-on-year pace in June than in May, showing the resilience of manufacturing.

Crude remains modestly higher this year, helped by OPEC supply discipline and expectations the Federal Reserve is getting closer to lower borrowing costs. An interest-rate decision from the US central bank is due Wednesday. The Organization of the Petroleum Exporting Countries and its allies meet a day later, with the market split on whether the group will alter production levels.

Traders will also be monitoring developments in the Middle East after Israel attacked Hezbollah targets on Sunday and threatened further retaliation for an earlier rocket strike that killed 12 children while continuing to signal it was open to a proposed Gaza truce.

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