US crude turns positive -

Описание: Weakened demand out of China could reduce oil output

LONDON:
Global oil benchmarks pulled back from their lowest levels in nearly a year on Monday, with US crude ending positive, bolstered by talk of an OPEC+ production cut that offset concerns about strict Covid-19 curbs in China, the world’s biggest crude importer. Price action was volatile. US West Texas Intermediate (WTI) crude settled up 96 cents, or 1.3%, at $77.24, after earlier touching its lowest since December 2021 at $73.60. Brent crude also briefly turned positive, but settled down 44 cents, or 0.5%, at trade at $83.19 a barrel, having slumped more than 3% to $80.61 earlier in the session for its lowest since January 4, 2022. Both benchmarks have posted three consecutive weekly declines. “The word on the street is there’s rumour that OPEC+ is already starting to float the idea of a production cut on Sunday,” said Matt Smith, lead oil analyst at Kpler. “That’s helped reverse losses that were caused overnight by Chinese protests.” Analysts at Eurasia Group suggested in a note Monday that weakened demand out of China could spur the Organisation of the Petroleum Exporting Countries and allies including Russia to cut output after reducing supply in October.