5 December 2022 | Other

Maintaining OPEC+ agreements and easing COVID restrictions in China continue to support oil

Oil prices rose 2% on Monday as OPEC+ countries maintained their output targets. This surge happened ahead of the European Union's (EU) cap on the price of black gold. 

Meanwhile, the Chinese government eased restrictions caused by COVID-19, acting as a positive sign for the oil demand.

Earlier, the OPEC+ countries reached an agreement to cut oil production by 2 million barrels per day. This treaty is likely to come into force in November 2023. Reuters reported that the countries confirmed their intent to follow the aforementioned plan at a meeting held on Sunday.

Analysts at ANZ Research believe that this decision is indicative of fluctuations in supply and demand for natural fossil fuels in the short term.

Ann-Louise Hittle, vice president of the Wood Mackenzie consulting, noted that the embargo on Russian oil products is going to take effect on February 5, 2023. These measures will support demand for crude oil in the first quarter of 2023. Currently, there is still a shortage of diesel and heating oil. 

Company MarketCheese
Period: 22.04.2025 Expectation: 800 pips
USDCAD to rise from new support at 1.38200
Yesterday at 11:39 AM 29
Period: 26.04.2025 Expectation: 3909 pips
GBPUSD technical correction opens up selling opportunities with 1.288 target
Yesterday at 11:13 AM 21
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segment "Metals"
Period: 24.04.2025 Expectation: 150 pips
Brent crude poised to rebound to $69
Yesterday at 10:55 AM 24
Period: 22.04.2025 Expectation: 1495 pips
AUDCAD set to enter fifth wave of growth
Yesterday at 08:29 AM 33
Period: 23.04.2025 Expectation: 2500 pips
Rebound to 145 could interrupt USDJPY decline
17 April 2025 66
AntonVolkov
AntonVolkov

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 21.04.2025 Expectation: 600 pips
AUDUSD rebounds from 0.64000 resistance level
17 April 2025 38
Go to forecasts