WTI rebounds to near $70 on PBoC's larger-than-expected rate cut

• The Oil price recovers to near $70.00 after PBoC's bigger-than-expected cut in its Loan Price Rate.
• Iranian oil and nuclear facilities are expected to remain safe from Israel's attack.
• Investors await the S&P Global PMI for fresh guidance on the Oil demand outlook.

West Texas Intermediate (WTI), futures on NYMEX, bounces back to near $70.00 in Monday's European session. The Oil price recovers strongly after a big boost from the People's Bank of China's (PBoC) larger-than-projected dovish decision on interest rates.

The PBoC cuts its one-year Loan Prime Rate by 25 basis points (bps) to 3.1%, with an intention to uplift economic growth, boosting spending and revive the realty sector. Additionally, the Chinese central bank cut the five-year LPR from 3.85% to 3.60%. Economists expected the PBoC to reduce its key borrowing rates by 20 bps. 

A larger-than-usual PBoC interest rate cut has improved the Oil demand outlook as China is the largest importer of the black gold in the world. The overall action in the Oil price remained bearish in the past week as Beijing didn't provide clarity on how the massive stimulus by China's ministry will be allocated.

On the geopolitical front, comments from Israeli Prime Minister Benjamin Netanyahu last week that they will not attack on Iran's non-military sites, which pointed to safety of Iran's oil and nuclear facilities, has diminished fears of supply disruption.

Going forward, the Oil price will be influenced by the preliminary S&P Global Purchasing Managers' Index (PMI) data for October of various nations, which will be published on Thursday.