Oil settles higher, posts weekly decline as Beijing eases Covid curb further

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Oil settles higher, posts weekly decline as Beijing eases Covid curb further

On Friday, both US and UK crude oil futures’ prices had regained some momentum, but reported weekly percentage decline as recession worries spiked higher. Nonetheless, in the day’s gain in crude oil futures’ prices were almost entirely galvanized by a latest decision from Beijing to ease its Covid-led restrictions further.

From a strategical viewpoint, China’s decision to soften its Covid-led restriction might have had a greater influence on global economy and help a flurry of economies yield a soft landing when it comes to an impending recession.

On top of that, latest move from China, the world’s largest crude oil importer, to curb pandemic-led restrictions had improved demand outlook of crude oil. Apart from that, a further softening of US Dollar had helped crude oil spiral upward, as a decline in US Dollar Index (DXY) usually leads to an upswing in crude oil futures’ prices.

Meanwhile, referring to China’s response, President of Ritterbusch and Associates LLC in Galena, Illinois, Jim Ritterbusch said, “China’s changing response to stubbornly high COVID-19 cases has added to the oil market’s price volatility and, should this new Chinese policy continue, the energy complex could be poised to erase most of this week’s decline”.

Crude oil rises, but posts weekly decline

Citing statistics, on Friday’s commodity market wind-down, UK crude futures’ prices closed about 2.4 per cent higher to $95.99 per barrel, while US WTI (West Texas Intermediate) crude oil futures’ prices settled 2.9 per cent higher to $88.96 per barrel.

Over the week, UK crude reported a decline of 2.6 per cent, while US West Texas Intermediate crude oil prices tumbled as much as 4.0 per cent.