According to Trend News Agency citing Reuters, oil prices increased this week as a result of China extending liquidity measures to support its pandemic-affected economy. This move raised expectations for a stronger outlook on fuel demand from the world’s biggest crude importer.
In response to last week’s 6.4% decline, Brent crude futures increased 66 cents, or 0.7%, to $92.29 a barrel. Following a 7.6% drop the previous week, U.S. West Texas Intermediate crude was up 56 cents, or 0.6%, at $86.17 per barrel.
On Monday, the central bank of China extended maturing medium-term policy loans while maintaining the interest rate at the same level for a second consecutive month.
According to economics experts, the full rollover indicates that the bank would keep its easy monetary policy in place.
According to a senior National Energy Administration official, China also promised to significantly enhance domestic energy supply capacity and tighten risk controls in important commodities such as coal, oil, and gas, as well as electricity.
An additional government representative stated at a news briefing in Beijing that China will continue to expand reserve stockpiles for important commodities.
China is scheduled to announce trade and economic figures this week. Although third-quarter GDP growth may improve from the previous quarter, President Xi’s strict COVID-19 policy has the world’s No. 2 economy facing its worst year in nearly half a century.
Moving forward, oil prices are predicted to stay unstable as OPEC+ production cutbacks compress supply ahead of the European Union ban on oil and gas from Russia.
On October 5, OPEC+ promised to reduce production by 2 million barrels per day; however, several members are already pumping below their commitments, so the actual reduction will only be roughly 1 million barrels per day.
In spite of this, the top exporter Saudi Arabia will maintain consistent exports to significant Asian markets in November.
