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.

 

Forecast:

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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