Oil approaches US$90 after denial of production increases

The Brent crude rises $1.33, or 1.5%, to $88.77 a barreland the West Texas Intermediate in the United States (WTI) earn $1.18, or 1.5%, $81.36. Thus, both accumulate three days of increases, after losing up to 6% in three wheels.

“Crude prices are trying to recoup their losses,” he said Naem Aslam, an Avatrade analyst speaking to Reuters. “The fact that Saudi Arabia has denied that there was any discussion of an oil supply increase with OPEC and its allies has supported the market today.”

United Arab Emiratesanother big OPEC producer, He denied that talks are underway. to change the latest OPEC+ deal, while Kuwait He stated that there is no talk of an increase in pumping.

OPEC, Russia and other allies, a group known as OPEC+, will meet on December 4, one day before the start of the European and G7 measures in retaliation for the Russian invasion of Ukraine, which could support the market. The A European Union ban will begin on December 5 at Russian crude oil importsas well as a plan for the G7 that will allow the Shipping service providers help export Russian oil, but only at forced low prices.

The concern about oil demand in the face of increases in interest rates Federal Reserve and the strict policies of lockdown by the Covid-19 in China they limited the rises in the day. The Asian giant detected the first death from Covid since May, in addition to an increase in infections. This triggered new closures of activities and establishments to try to contain the virus. The province of Canton, with a strong manufacturing imprint, is the most affected with more than 8,000 new cases.

Also added are the projections that the global economy will enter a recession next year and that many regions will do so in the fourth quarter of the year.

The growth of the world economy it will go from 3.1% this year to 2.2% in 2023, before rebounding to 2.7% in 2024, the Organization for Economic Cooperation and Development (OECD) indicated on Tuesday in its latest forecasts. As detailed from the entity, the role of the energy crisis in this is central.

Secondly, Europe is expected to enter a recession for the fourth quarter of the yearwhile the gross domestic product (GDP) of the euro zone slowed its rate of expansion between July and September to 0.2% from the 0.8% observed in the second quarter of the yearaccording to the estimate published by the Community statistical office, Eurostat.