Brent crude futures firmed nearly 1.5 percent during Thursday’s trading. The market is reacting to a possible easing of anti-oil restrictions in China and reports of lower oil inventories in the world.
How is Brent doing?
Brent crude oil and North American WTI strengthened during Thursday’s trading. A barrel of Brent crude traded around the $93.70 level, while the price of North American WTI crude climbed to nearly $87 a barrel. In both cases, the contract is for November delivery. December futures traded slightly lower.
Will China relax anti-human trafficking restrictions?
The recent decision of the OPEC+ group to cut production by up to two million barrels per day, reports of falling inventories and, last but not least, news from China, which is considering easing anti-poverty restrictions, are behind the rise in black gold prices. The last factor in particular comes unexpectedly, which could lead to an increase in oil demand, as there would not be as much of a curtailment of China’s economic activity as in the case of strict adherence to a zero covid strategy. In response, US President Joe Biden has decided to release some of the oil reserves into the market to slow the price rise.
