Global crude oil news

2 Dec 2022 , 08:38 AM

In early Asian trade on Friday, oil prices dipped slightly as the US dollar recovered some of its losses and COVID-19 limitations eased in two Chinese cities, which reduced losses.

The price of Brent oil futures had fallen by 11 cents, or 0.1%, to $86.77 per barrel, while the price of U.S. West Texas Intermediate (WTI) crude futures had fallen by 14 cents, or 0.2%, to $81.08 per barrel.

Following data that showed U.S. consumer spending increased significantly in October, the U.S. dollar, which typically trades inversely with oil, edged higher after falling to 16-week lows against a basket of major currencies.

Nevertheless, as COVID-19 curbs were relaxed in two significant Chinese cities, both benchmarks were on track for their first weekly gains after three straight weeks of decline.

On Wednesday, the cities of Chongqing and Guangzhou announced a relaxation of COVID limits.

According to diplomats and a document obtained by Reuters, European Union states have informally agreed to a $60 per barrel price ceiling on Russian seaborne oil with an adjustment mechanism to maintain the cap at 5% below the market price.

The accord must receive official approval from all EU countries by this Friday. An EU diplomat said Poland, which had pressed for the cap to be as low as possible, has not declared its support for the agreement.

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