According to OPEC's most recent monthly oil market report, the Organization of the Petroleum Exporting…
Fears about the demand for oil have increased as China tightened its Covid policy.
Tuesday’s drop in oil prices was attributed to concerns about future demand as China reiterated the continuation of its tight economic policy.
At 10:01 a.m. local time (07:01 GMT), the price of international benchmark Brent crude was USD97.82 per barrel, down 0.10 percent from the previous trading session’s closing price of USD97.92 per barrel.
At the same time, the American benchmark West Texas Intermediate (WTI) traded at USD91.60 per barrel, down 0.21 percent from the previous session’s closing price of USD91.79.
Fears of declining oil demand led China to reiterate its steadfast adherence to its long-standing “zero-Covid” policy, reinforcing bearish market sentiment.
Hu Xiang, a disease control officer, stated on Monday that China’s stringent pandemic measures “are entirely correct, and the most inexpensive and successful.”
However, official customs figures show that China’s crude oil imports grew in October for the first year-over-year gain since May, reaching 43.14 million tons.
Concerns over supply have increased as members of the Organization of the Petroleum Exporting Countries (OPEC) have begun reducing their collective output by 2 million barrels per day (BPD) in compliance with a recent resolution.
The market is also being affected by the impending sanctions deadline on Russian oil supplies to Europe, which goes into force on December 5.
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