WTI crude oil futures fell toward $79 per barrel on Monday, sliding for the fourth straight session amid concerns that China may tighten Covid curbs and that major central banks will continue raising interest rates.
China reported its first Covid-related deaths in almost six months over the weekend, while localized lockdowns were implemented in some areas on Monday as the world’s top crude importer continued to grapple with resurgent Covid outbreaks. Investors were also worried that tightening financial conditions could tip the global economy into recession, hurting energy demand.
Still, investors remained cautious about a highly uncertain supply outlook heading into winter, with the European Union set to ban Russian crude flows from December, while OPEC is expected to keep oil markets tight
WTI crude futures pared losses to trade above $79 per barrel, after falling more than 5% to the lowest level since January, after Saudi Arabia denied news of a potential oil output increase. Earlier, the Wall Street Journal reported that Saudi Arabia and other OPEC producers were discussing an increase in crude production.
The report suggested that an increase of up to 500,000 barrels per day was under discussion for OPEC+’s December 4th meeting. Oil prices have been falling for the past four sessions, amid demand concerns from tighter Covid curbs in China and fears that major central banks will continue raising interest rates.
China reported its first Covid-related deaths in almost six months over the weekend, while localized lockdowns were implemented in some areas on Monday as the world’s top crude importer continued to grapple with resurgent Covid outbreaks.
