Page 12 - Tom Kool News Today

Bearish sentiment is building in oil markets as Chinas covid crisis continues, U.S. oil inventories build, and the oil price cap faces questions

The selloff in oil continued on Friday, with WTI prices falling more than 5% as China reportedly asked the Saudis to ship less crude in December

Crude prices fell on Tuesday ahead of official inventory data as traders continue to focus on demand risks in China

Oil markets are responding once again to news out of China, with oil prices up by over 3% as Covid restrictions are eased

The speculation surrounding Chinas zero-covid policy has sparked volatility in oil markets, and while crude was moving higher last week, this week may see a turnaround.

The weakening of the US dollar helped oil prices this week, keeping WTI front-month prices at $86 per barrel despite the avalanche of bad macroeconomic news

A decision earlier this month by a group of the world's largest oil exporters to drastically reduce oil production to stem the decline in oil prices could be a ‘tipping point’ for a global recession, says the International Energy Agency.

WTI crude has fallen back to pre-OPEC cut announcement levels, with Brent crude falling back below $90 per barrel on global recession fears.

The bullish news of the OPEC+ output cut is wearing off, and the market is once again focusing on the possibility of a global recession

The OPEC+ decision to cut its production quota by 2 million bpd has left President Biden stuck between a rock and a hard place