Brent weaker on rumors that OPEC will further cut its production

Crude oil futures closed higher on Monday (Nov. 28), supported by expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) will further cut oil production at the Dec. 4 meeting.

  • WTI crude futures rose 96 cents, or 1.26%, to settle at $77.24 a barrel.
  • BRENT crude futures were down 44 cents, or 0.53%, at $83.19 a barrel.

Analysts at Eurasia Group said in a report yesterday that weak oil demand in China could prompt OPEC and OPEC+ to further cut production at their Dec. 4 meeting, having already lowered it at a meeting last month in October.

The forecast boosted WTI oil prices after they fell to $73.60 during the day, the lowest level since Dec. 2021.

Chinese people are protesting the government’s zero-COVID policy. They gathered on the streets of cities such as Shanghai, Beijing, Wuhan, Chengdu, Xi’an and Nanjing to express their displeasure that the government’s ongoing lockdown measures are affecting people’s lives. Some protesters called for the resignation of President Xi Jinping.

In addition, the epidemic situation in China remains deteriorating. China reported 40,347 new COVID-19 cases on Sunday, November 27, the highest daily number since records began, according to the National Health Commission of China (NHC).

Investors are waiting for the European Union (EU) negotiations on setting a cap on Russian oil prices in the range of $65-70/barrel. The latter is still unable to reach an agreement. And further negotiations are expected this week before it should come into force on December 5.

The Spot Market is Open

Tuesday, November 29, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.00

78.29

+1.05

+1.36%

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