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Oil down over demand fears after China boosts strict Covid policy

November 8, 2022, 8:41 pm

ANKARA – Oil prices declined on Tuesday due to looming demand fears after China reaffirmed the continuation of its strict pandemic policy.

International benchmark Brent crude traded at USD97.82 per barrel at 10:01 a.m. local time (0701 GMT) for a 0.10 percent decrease from the closing price of USD97.92 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at USD91.60 per barrel at the same time, a 0.21 percent loss after the previous session closed at USD91.79 a barrel.

China reaffirmed its unwavering adherence to its long-standing "zero-Covid" policy amid fears of falling oil demand, bolstering bearish market sentiment.

China’s strict pandemic policies "are completely correct, and the most economical and effective," Hu Xiang, a disease control official, said on Monday.

However, according to official customs data, China's imports of crude oil increased in October for the first year-on-year growth since May to 43.14 million tons.

Meanwhile, Organization of the Petroleum Exporting Countries (OPEC) producers have started cutting their collective output by 2 million barrels per day (bpd) in accordance with their recent decision, adding to supply concerns.

The looming sanctions deadline on Russian oil exports to Europe, which takes effect on December 5, is also weighing on the market. (Anadolu)

 

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