Business News Asia
Crude oil prices rose early today after OPEC+ maintained its policy of cutting oil production ahead of an EU ban on oil imports and a G7 cap on Russian oil prices today (Dec. 5).
In addition, Chinese cities are easing COVID-19 control measures, which is a positive sign for oil demand in China. China is the world’s largest importer of oil.
- WTI crude futures rose $1.61, or +2.01%, to $81.59 a barrel.
- BRENT crude futures rose $1.86, or +2.17%, to $87.43 a barrel.
OPEC and Russia-led OPEC+ agreed on Sunday to continue implementing production cut plans agreed upon in October. This means a production cut of 2 million barrels per day from November 2022.
Analysts said the OPEC+ decision was expected as major producers await the impact of the EU’s ban on Russian oil imports and the G7’s price cap on Russian oil via sea. Russia, meanwhile, is threatening to cut off oil supplies to countries participating in the oil price cap.
“Given the unprecedented uncertainties, the OPEC+ watch and wait strategy appears very sound,” said analysts at RBC Capital Markets.
The Spot Market is Open
Monday, December 5, 2022