Oil prices rose on Monday (5) after OPEC+ countries kept their production targets stable ahead of a European Union ban and a G7 price cap that came into force for Russian oil.
At the same time, in a positive sign for fuel demand in the world’s biggest oil importer, more Chinese cities eased Covid-19 restrictions over the weekend.
Brent crude was up about 2.5% to $87.70 by 9:50 am ET, while US-traded WTI gained about the same percentage to around $82 a barrel.
OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, stuck to the policy that enraged the United States and other Western nations in October when it agreed to cut production by 2 million barrels a day. , about 2% of world demand, from November to the end of 2023.
“The decision… comes as no surprise given the uncertainty in the market over the impact of the EU’s Dec. 5 ban on Russia’s crude oil imports and the G7 price cap,” said Ann-Louise Hittle, Vice President Wood Mackenzie Consulting.
“Moreover, the producer group faces downside risk due to potential weakening global economic growth and China’s zero Covid policy.”
Group of Seven (G7) countries and Australia last week agreed to a price cap of $60 per barrel for Russian seaborne oil.
Source: CNN Brasil
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