Oil prices rebounded by three per cent on Tuesday over speculation that the Organisation of Petroleum Exporting Countries and its allies (OPEC+) including Russia, will deepen supply cuts to respond to weakening global demand. Another impact was the hope that China will relax its strict COVID-19 controls after protests rocked the country over the weekend. Brent crude futures gained $2.50, or three per cent, to $85.69 a barrel at 1119 GMT while U.S. West Texas Intermediate (WTI) crude futures rose $1.98, or 2.6 per cent, to $79.22.
The oil price increase has been regarded as a good development as oil prices on Monday plummeted to the lowest level since December 22, 2021, following aggressive protests in China over the country’s continued zero- COVID policy. U.S. West Texas Intermediate (WTI) crude on Monday crashed by $2.39, or 3.1 per cent, to $73.89 a barrel. It fell as far as $73.60 earlier, which is its lowest since December 22, 2021.
Brent crude dipped $2.66, or 3.1 per cent, to trade at $80.97 a barrel at 1000 GMT, after dipping more than three per cebr to $80.61 earlier in the session which is its lowest since January 4, 2022. Health officials of China yesterday said China plans to speedup COVID 19 vaccinations for elderly people, aiming to overcome a key stumbling block in efforts to ease unpopular “zero-COVID” curbs.