WTI Crude oil rose toward $90 per barrel on Monday, rising for the third straight session on the back of an improving demand outlook in China after the world’s top crude oil importer china issued sweeping directives to boost its property sector and eased some Covid restrictions.
Markets are turning more optimistic about China’s growth outlook due to these major policy shifts, and as authorities signaled that they are turning their attention toward supporting the economy.
The prospect of even tighter supply also bolstered the bullish outlook after OPEC+ agreed to cut production by 2 million barrels per day in November, while the European Union ban on Russian oil is set to take effect in December.
Meanwhile, US Treasury Secretary Janet Yellen said over the weekend that EU sanctions will likely force Russia to offer some of its crude at a price set by the US and its allies if it wants to avoid a shut-in of some supplies.
While The dollar index rose toward 107 on Monday, rising slightly from near three-month lows after Federal Reserve Governor Christopher Waller warned investors against getting too optimistic over one inflation report, and said that the central bank “still got a ways to go” with interest rate hikes.