Oil prices increased during the week ending Dec. 2, supported by easing COVID contingency measures in China and a weakening dollar, which influenced traders’ appetites.
International benchmark Brent crude traded at $86.82 per barrel at 2 p.m. local time (1100 GMT) on Friday, a 3.35% increase from the opening price on Monday of $84 a barrel.
The American benchmark West Texas Intermediate (WTI), trading at $81.07 per barrel at the same time, saw a 6.77% rise compared to Monday’s opening of $75.93 a barrel.
Prices increased ahead of the OPEC+ meeting scheduled for Dec. 4 and the EU ban on Russian oil exports, which will take effect on Monday, Dec. 5.
Concerns of a weakening global economy have been alleviated in part after Chinese authorities stated that they may modify the strict ‘zero-COVID’ policy that sparked a wave of protests in the country.
The possibility of relaxing COVID restrictions raises hopes for an increase in oil demand. Following protests in Guangzhou and Chongqing in the country’s south, COVID-19 measures were eased on Wednesday.
The decline in the value of the US dollar pushed oil prices higher, making trade more appealing for oil buyers using other currencies.
Reports that major oil producers in the OPEC+ group are considering production cuts due to declining Chinese demand aided the price increases this week.
