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.