09/28 Closing prices / revised 09/29/2023 08:42 GMT  |    09/28    OPEC Basket    97.48        +0.40 |    09/28   Mexico Basket (MME)        $88.12       -1.31  06/23  Venezuela Basket (Merey) $57.37  + 1.15 ( from previous month)  (Est. OPEC)  | 09/28    NYMEX WTI Texas Intermediate November  CLX23  $91.71     -1.97  | 09/28    ICE Brent November  BRNX23   $95.38     -1.17  | 09/2 8   NYMEX Gasoline October  RBV23    $2.505    -3 6%   09/28    NYMEX  Heating Oil  October HOV23   $3.318     +0.1%    |  09/28    Natural Gas November NGX23    $2.945     +1.6%  09/22    Active U.S. Rig Count (Oil & Gas)    630      -11 | 09/29    USD/MXN Mexican Peso   17.4471  Live data  | 09/29      EUR/USD  1.0610 Live data  | 09/29   US/Bs. (Bolivar)      $34.3009000  ( data BCV)    |

U.S. oil prices on Tuesday settle higher on hopes China will relax COVID curbs – MarketWatch

‘Increased chatter’ for a possible OPEC+ output cut also boosts prices

US refineries consumed more crude last week, but still about a fifth less than a year ago (AFP)

Myra P. Saefong and William Watts, MarketWatch

EnergiesNet.com 11 29 2022

U.S. oil futures settled higher Tuesday, finding support as signs China might loosen COVID-19 restrictions helped ease worries about energy demand.

Speculation that major oil producers may agree to cut production at a meeting on Sunday also contributed to the day’s gains for the U.S. crude benchmark, analysts said.

Price action

  • West Texas Intermediate crude for January delivery CL.1, 0.83% CL00, 0.81% CLF23, 0.84% rose 96 cents, or 1.2%, to settle at $78.20 a barrel on the New York Mercantile Exchange. On Monday, prices based on the front-month contracts touched their lowest intraday level since December, but finished higher.

  • January Brent crude BRNF23, 1.08%, the global benchmark, declined by 16 cents, or 0.2%, to settle at $83.03 a barrel on ICE Futures Europe. February Brent BRN00, 0.85% BRNG23, 0.90%, the most actively traded contract, rose 36 cents, or 0.4%, to $84.25 a barrel.

  • December gasoline RBZ22, 0.34% rose nearly 0.1% to $2.3321 a gallon.

  • December heating oil gained 2.5% to $3.2959 a gallon.

  • January natural gas NGF23, -0.69% rose 0.5% to $7.235 per million British thermal units.

Market drivers

China’s National Health Commission announced a push to vaccinate the elderly and cut the number of times between boosters to three months for over 80-year-olds, as the country deals with its worst virus outbreak thus far in the pandemic.

“The announcement follows unprecedented street protests against President Xi [Jinping], and is the first indication that Beijing may be considering a relaxation of its draconian Covid-control policies. The prospect of a return to normality, in an economy that is the world’s largest oil importer, was enough to make oil prices jump, in the first significant price rebound of the last two weeks,” said Ricardo Evangelista, senior analyst at ActivTrades, in a note.

Oil had fallen sharply early Monday, with the U.S. benchmark briefly erasing its 2022 gains, as protests across China in response to the country’s strict COVID-19 restrictions sparked fears of a crackdown and a further hit to crude demand. Oil later bounced, finishing higher, amid speculation about the potential for a deeper cut in production by OPEC+.

See: U.S. oil taps its lowest price of the year thanks to China as OPEC+ output decision looms

There’s “increased chatter” in the energy space that the Organization of the Petroleum Exporting Countries and its allies will cut production at the Dec. 4, meeting, said Robert Yawger, director of energy futures at Mizuho Securities USA, in a Tuesday note.

OPEC+ delegates said additional reductions to output could be an option, following a 2 million-barrel-a-day cutback last month, according to a recent Bloomberg report.

Just two weeks ago, there were reports the OPEC+ may decide to add 500,000 barrels to help compensate for the Dec. 5 European Union embargo on Russian barrels, said Yawger. However, global benchmark Brent crude touched its lowest price since January on Monday.

OPEC+ will reportedly hold a virtual gathering Sunday instead of meeting in person. “Opting for no-drama optics seemingly increases the likelihood of a rollover decision,” Helima Croft, head of global commodity strategy and MENA research at RBC Capital Markets, wrote in a note Tuesday.

OPEC+ may also be hoping to steer clear of a “media maelstrom” one day before the European Union’s latest package of sanctions, including a ban on Russian oil, kicks in on Dec. 5, said Croft.

marketwatch.com 11 29 2022

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com

CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

Scroll to Top