News: WTI 2022-12-05 16:33

Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed

Oil prices rose on Monday after OPEC+ nations held their output targets steady ahead of a European Union ban and a G7 price cap which kicked in on Russian crude.

At the same time, in a positive sign for fuel demand in the world’s top oil importer, more Chinese cities eased Covid-19 curbs over the weekend.

While prices rose as much as 2% earlier in the day, both the Brent and U.S. West Texas Intermediate (WTI) contracts have since pared some gains.

Brent crude futures were last up $2.30, or 2.7%, to $87.87 a barrel, while WTI crude futures gained $2.23, also 2.8%, to $82.21 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together called OPEC+, agreed on Sunday to stick to their October plan to cut output by 2 million barrels per day (bpd) from November through 2023.

“The decision ... is not a surprise, given the uncertainty in the market over the impact of the Dec. 5 EU Russia crude oil import ban and the G7 price cap,” said Ann-Louise Hittle, vice president of consultancy Wood Mackenzie.

“In addition, the producers’ group faces downside risk from the potential for weakening global economic growth and China’s zero Covid policy.”

The Group of Seven (G7) countries and Australia last week agreed on a $60-a-barrel price cap on seaborne Russian oil.

Business and manufacturing activity in China, the world’s second largest economy, have been hit this year amid strict measures to curb the spread of the coronavirus.

Persistent sluggishness in China’s economy could reverse oil’s price gains, said Leon Li, a Shanghai-based analyst at CMC Markets.

“The current economic data of China is still weak ... It is challenging to drive the demand for crude oil,” said Li.
Recent events
2023-01-25 14:03
News 426
German Ifo index improves again in January

Germany’s most prominent indicator has improved for the fourth month in a row, but the renewed optimism is still based...

2023-01-18 18:56
News 813
US production plunge adds to fears we could already be in recession

Coming on the back of the weakness in retail sales, the steep drop in industrial production and news of more job lay-off...

2023-01-18 18:54
News 810
Fed reaches the end game as US data disappoints yet again

Widespread falls in key retail sales components and broadening signs that inflation pressures are rapidly moderating mea...

2023-01-18 18:53
News 739
Bank of Japan defies market speculation; keeps policy steady

In keeping its key rate and yield curve control policy unchanged at today's meeting, the Bank of Japan probably wanted t...

2023-01-18 18:51
News 647
Jump in UK services inflation provides ammunition to BoE hawks

Headline inflation has peaked but pressure from the service sector continues to build. That's likely to tip the balance ...

2023-01-13 19:09
News 792
German economy still defies recession

The German economy grew by 1.9% in 2022. This implies a stagnating, not contracting, economy in the fourth quarter. Will...

2023-01-13 19:06
News 816
China’s export contraction means more infrastructure spending to support recovery

China's exports and imports continued to contract in December. This signals weak external demand which could hamper the ...

2023-01-09 14:37
News 975
German industry stagnates at too low level

Industrial activity in November provided more evidence that the economy did not fall off a cliff in the fourth quarter b...

2023-01-05 11:46
News 1466
German exports weaken further in November

Exports continue to weaken, suggesting that recession fears are real

German export weakness continues. Ge...

2023-01-04 22:51
News 1582
US jobs numbers could soon start to turn

Today’s data offers further further evidence that labour demand remains strong despite clear signs of a weakening econ...

2023-01-04 14:30
News 1534
German inflation drops to 8.6% in December

Lower oil and gasoline prices and the first phase of the government's gas price cap have pushed down headline inflation ...

2022-12-31 15:36
News 1741
BOJ considering raising inflation forecasts to near 2% target -Nikkei

The Bank of Japan (BOJ) is considering raising its inflation forecasts in January to show price growth close to its 2% t...

2022-12-30 12:04
News 851
South Korea: CPI inflation unchanged in December

Entering 2023, we expect headline CPI to head down to 4%. Gasoline prices and utility fees are set to rise meaningfully ...