Global crude oil news

14 Nov 2022 , 08:04 AM

As China relaxed some of its tight COVID-19 regulations on Monday, oil prices increased by about 1%, extending gains from the previous day and raising expectations for a rebound in economic activity and demand in the world’s largest crude importer.

After closing up 1.1% on Friday, Brent crude futures increased 87 cents, or 0.9%, to $96.86 a barrel.

After ending Friday’s session 2.9% higher, U.S. West Texas Intermediate oil futures were at $89.76 per barrel, up 80 cents or 0.9%.

After China’s National Health Commission modified its COVID prevention and control methods on Friday, commodity prices increased. But over the weekend, COVID cases increased in China.

The loosened restrictions included reducing quarantine periods for people who were in close proximity to cases and incoming travellers by two days and getting rid of the fine that airlines paid for bringing in contaminated passengers.

Due to many refiners’ requests to lift less crude in December, China’s demand for oil from Saudi Arabia, the world’s top supplier, remained poor.

Separately, U.S. Treasury Secretary Janet Yellen stated on Friday that India can keep purchasing as much Russian oil as it pleases, even at prices exceeding a G7-imposed price cap mechanism, as long as it stays away from Western insurance, finance, and maritime services that are subject to the quota.

Governor of the U.S. Federal Reserve Christopher Waller stated that a streak of favorable reports would be required before the bank would lift the brakes on interest rate increases, which have been raising the currency and lowering the pricing of goods priced in the greenback.

Before the G20 conference, U.S. President Joe Biden and Chinese President Xi Jinping will have their first in-person meeting since Biden assumed office on Monday on the Indonesian island of Bali.

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