Oil prices rose on Tuesday, reducing losses in the previous session, after dollar weakness outstripped the magnitude of the Crown’s restrictions on China, which raised fears of a slowdown in China’s fuel demand, the latter. oil consumer to the world.
Brent crude futures for January delivery rose 73 cents, or 0.8%, to $ 93.54 a barrel by 04:06 GMT. The December contract expired on Monday at $ 94.83 a barrel, down 1%.
US West Texas Intermediate crude rose 58 cents, or 0.7%, to $ 87.11 a barrel.
Brent and West Texas crude finished higher in October, posting their first monthly gains since May, after the Organization of the Petroleum Exporting Countries (OPEC) and Russia-led allies announced plans to cut oil production. two million barrels a day.
The US dollar fell from its high in a week against a basket of its major counterparts on Tuesday, with traders waiting for the message officials from the Federal Reserve (the US central bank) will send at the monetary policy meeting on Wednesday.
A weak dollar makes oil cheaper for holders of other currencies and usually reflects an investor’s increased risk appetite.
OPEC raised its forecast for medium- and long-term global oil demand on Monday, saying $ 12.1 trillion in investment is needed to meet this demand despite the shift to renewable energy.
Coronavirus-related restrictions in China forced the temporary closure of the Disney resort in Shanghai on Monday, while Apple’s iPhone phone production at a large facility in China could decline by 30% in November.
Strict epidemic restrictions reduced factory activity in China in October and reduced imports from Japan and South Korea.
U.S. oil production jumped to nearly 12 million barrels a day in August, the highest level since the Corona pandemic began, causing price pressures, even as shale oil companies have announced they are not expecting an acceleration of production in the coming months.
Reuters
