Reuters: Positive news from China will ease the pressure on oil

30 November 2022 302
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Source: Reuters

Author: Trixie Sher Li Yap

Article: Original article

Publication date: Wednesday, November 30, 2022


Oil prices firmed in Asian trade on Wednesday amid falling US crude inventory figures from the API, a weakening of the dollar and some optimism about China's economic outlook. The high likelihood that OPEC+ could leave output unchanged at its upcoming meeting limits the potential of rising oil prices.


China reported fewer COVID-19 cases on Wednesday compared to Tuesday. This could lead to an easing of travel restrictions. Guangzhou, a southern city, relaxed COVID prevention rules in several areas on Wednesday.


According to Rystad senior vice president Claudio Galimberti, the current real-time data indicates only a small downturn in traffic in China. National traffic in the fourth week of November is at 95% of 2019 levels, compared with 97% at the beginning of the month. This signals a better-than-expected domestic demand for fuel.


Galimberti estimates that Brent will trade higher around $90/bbl and WTI around $83/bbl in the first half of December.



Oil prices will rise in the next few weeks

This content is for informational purposes only and is not intended to be investing advice.

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