The initial losses were attributed to reports of Covid-19 deaths in China, raising concerns about new lockdowns and weaker energy demand, along with news that OPEC was considering raising production.
Crude markets took a breather after Saudi Arabia said OPEC may cut production. Amid the war of words, “Chinese covid and the threat of a global recession threaten to become major demand-busting events.”
Oil later rebounded from those losses after Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, said the kingdom is sticking with production cuts and not discussing potential measures to balance the market amid falling prices. prices, denying a report by the prestigious financial newspaper The Wall Street Journal.
The release of more oil from the Strategic Reserves, against a background of weak fuel demand from China, coupled with the strength of the US dollar, would have put the market into a lower futures price situation, encouraging more oil to be sold. will store
The number of new Covid cases in China remained near April highs as the country battles outbreaks in its major cities.
Aside from the weakening demand outlook due to China’s covid cuts, the rally in the US dollar today is also a bearish factor for oil prices,” said CMC Markets analyst Tina Teng.