Oil prices fluctuate slightly but end the week with growth, Brent – $86.99 a barrel
Oil prices fluctuated weakly and multidirectionally in trading on Friday, but finished the week with a strong increase, thanks to signals of gradual easing of quarantine restrictions in China.
Several major Chinese cities announced the easing of quotas, which allows investors to hope for an increase in business activity and, accordingly, demand for oil in the country.
Guangzhou, Shijiazhuang and Chengdu relaxed requirements relating to the regularity of tests for COVID-19 and the movement of citizens, Bloomberg reported. Markets and public transportation began operating in some areas. In Beijing, sick people were allowed to stay at home instead of being isolated in special centers.
The cost of February futures for Brent crude oil on London’s ICE Futures exchange was $86.99 a barrel by 6:15 a.m. KSC on Friday, up $0.11 (0.13%) from the previous session’s close. Those contracts fell $0.09 (0.1%) to $86.88 a barrel at the close of trading on Thursday.
The price of WTI futures for January oil at NYMEX fell by $0.03 (0.04%) to $81.19 per barrel by that time. By closing of previous trades these contracts grew by $0.67 (0.8%) to $81.22 per barrel.
Since the beginning of this week, Brent has risen 4% and WTI more than 6%.
“We should not expect a sharp reversal of Chinese policy, but any easing of covid restrictions is welcome,” said OANDA chief analyst Craig Erlam. – The PRC’s approach to fighting the coronavirus has been devastating for the economy and the trust of citizens, and the protests have shown how public attitudes have changed.”
The focus for traders this week is the next OPEC+ meeting this weekend, and the market largely expects the organization’s states to decide to keep production levels unchanged, Bloomberg notes.
On Monday, an EU embargo on Russian oil purchases comes into effect.
In addition, according to the G7-approved plan, starting from December 5, the EU and British companies will be able to provide shipping and insurance services for transportation of Russian oil, only if it is bought at a price below a certain ceiling.
The Wall Street Journal reported Thursday, citing its sources, that the European Commission, in response to Russia’s continued war against Ukraine, proposed that the 27 EU countries approve a price ceiling on Russian oil of $60 per barrel.
