Crude oil rises Monday morning in Asia – Rising demand from China expected

Asian oil prices rose Monday as the U.S. dollar weakened. Investors are waiting for data from China to assess demand from the world’s largest crude importer.

  • Brent crude rose 85 cents, or 0.9%, to $92.48 a barrel.
  • WTI crude was $86.34 a barrel, up 73 cents, or 0.9%.

Tina Teng, analyst at CMC Markets, said oil prices were encouraged by Chinese President Xi Jinping’s remarks at the party congress reaffirming accommodative economic policies, which is a positive signal for the demand outlook.

But Xi’s strict COVID-19 policy gave the world’s second-largest economy its worst year in nearly half a century.

In addition, oil prices will remain volatile as OPEC+ production cuts will tighten supply ahead of EU sanctions on Russian oil.

As of October 5, OPEC+ committed to a production cut of 2 million barrels per day. This will result in a real reduction of about 1 million barrels per day, as some members have already produced less than the target.

However, Saudi Arabia’s top exporter will continue to export to key Asian markets in November.

The Spot Market is Open

Monday, October 17, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
12.10

86.32

+0.71

+0.83%

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