Oil strengthens moderately on hopes of China stimulus

FXStreet (Mumbai) - Oil prices witnessed moderate strength on Tuesday after a weak inflation data in China triggered hopes of more monetary stimulus.

Front month US crude climbed 32 cents to USD 58.46/barrel, after ending the previous session down 99 cents. Brent futures rose 17 cents to USD 63/barrel.

Speculations of fresh Chinese stimulus kicked-in after the data in China showed consumer inflation weakened more than market expectations, to 1.2 percent year-on-year in May, while producer prices fell for the 38th straight month.

Oil prices are also under pressure as Chinese oil imports fell almost 11% in May, its steepest drop since November 2013.