Brent ends Tuesday in the red as OPEC is expected to maintain its production policy

Crude oil futures closed higher on Tuesday (Nov. 29) on hopes that China would ease its COVID-19 containment measures and open up the country. This will be a factor supporting oil demand. However, concerns that OPEC and OPEC+ will maintain their production policies at Sunday’s meeting diminished the positive momentum in oil contracts.

  • WTI crude futures rose 96 cents, or 1.2%, to close at $78.20 a barrel.
  • BRENT crude futures were down 16 cents, or 0.2%, at $83.03 a barrel.

China’s National Health Commission said today that China will encourage the elderly to get vaccinated against COVID-19, which experts say is an important factor in opening up the country. The local government has taken strict measures to control the epidemic with the zero COVID policy.

Beijing, meanwhile, announced that it would lift the barricades at the entrances to the apartments where COVID-19 patients were located and stated that nothing would impede medical care or emergency exits.

The city of Guangzhou has announced that it will refrain from mass testing for COVID-19. The city of Urumqi, the capital of Xinjiang, has announced that it will conserve resources while allowing markets and stores in low-spread areas to reopen this week. Including public bus transport.

The easing of measures came after Chinese citizens took to the streets in economically important cities to protest the government’s continued use of lockdown measures to contain the spread of COVID-19. This is affecting people’s livelihoods and causing shortages of food and drinking water.

However, oil futures rose after OPEC and OPEC+ was expected to maintain production cuts and thus its production policy at its meeting on December 4. After the last meeting on October 5, OPEC and OPEC+ decided to cut production by 2 million barrels per day for November.

The Spot Market is Open

Wednesday, November 30, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
12.00

79.09

+0.89

+1.14%

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