Yesterday’s slight rally in crude oil was supported by rumours that OPEC+ would reduce production, despite concerns about shortages. China, however, is still implementing COVID-19-related activity restraints. USOil closed higher on the $78.83 After briefly touching the barrel, it will be per square inch. $79.60 Per barrel area and trades over the key $80.00 Today (Wednesday) level at $80.20.
Oil prices did not suffer from a slightly stronger dollar. However, the support from Monday’s meeting, in which OPEC+ delegates stated that they could still consider further crude output cuts, if necessary, to balance demand and supply, continued to be in place.
The rise in oil prices wasn’t without support. China announced that it would support vaccinations for its senior citizens. This would allow for easing pandemic restrictions as well as a quicker reopening.
Concerns over China’s energy demand have continued to weaken crude oil prices in recent times. China reported a record 38.808 Covid infections on Sunday. This could cause more pandemic lockdowns, which could reduce economic growth as well as energy demand. However, widespread protests could force the government to reconsider its Zero-Covid policy.
OPEC+ will meet at 4 December; they…