Although the global recession fears have limited the gains, Brent crude futures rose $ 3. 99, to $ 98. 57 a barrel upon settlement during the Friday session. Raw saw gains of 5.12% throughout the week.
In the Friday session, the US West Texas Intermediate crude futures rose $2. 96, or 5%, to 92. 61 dollars a barrel, bringing the week’s gains to 5. 36%.
While the market is affected by concerns about demand, it is also anticipated that supply would decrease as a result of the impending European oil embargo on Russian oil and the reduction in US crude reserves.
“The slight decline in the dollar and the upcoming ban on Russian oil sales are undoubtedly auxiliary factors, with the concentration of recession to supply problems,” said Tamas Valga, an analyst at BM Oil Assositz.
“But the biggest catalyst is reports that China may ease Safar Kovid regulations, which will strengthen its economy and increase demand for oil,” he continued.
Beginning on December 5, the European Union will prohibit the import of Russian oil.
After injuries rose last Thursday to their highest level since August, China maintained its rigorous strategy for managing Kovid, but a former official in disease management predicted that big adjustments will be made to that policy soon.
To highlight the demand concerns, Saudi Arabia reduced the official selling price of the light Arab crude to Asia in December, with a $ 5. 45 barrel bonus above the average medium of Dubai and Oman.
The decrease was in line with what industry insiders had anticipated would happen given forecasts of a drop in Chinese demand for crude.
Strong weekly gains are made by oil, and Brent is getting close to $ 99.
About Author
