Business News Asia
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.
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Monday, October 17, 2022