SINGAPORE: Oil prices in the international market remained steady on Wednesday amidst tightening Covid-19 curbs by China, which is the net importer of oil.
On the other hand, Saudi Arabia that said OPEC+ was would not cut output and may take further measures to balance the edgy oil market.
According to Reuters, brent crude futures dropped 15 cents, or 0.2%, to $88.21 a barrel at 0508 GMT. The US West Texas Intermediate (WTI) crude futures lost 9 cents, or 0.1%, to $80.86 a barrel in the international market.
According to reports, both benchmark contracts rose about 1% on Tuesday as the UAE, Kuwait, Iraq and Algeria reinforced comments from Saudi Arabia’s energy minister that the OPEC and allies together were not considering boosting oil output. The OPEC+ next meeting is going to be held on December 4.
Meanwhile, China, the top crude oil importer, has been grappling with a surge in COVID-19 cases that had deepened worries about its economy, the second largest in the world.
Late on Tuesday, Shanghai tightened rules for people entering the financial hub. In the meanwhile, Beijing has shut parks and museums as Covid-19 cases rise steadly. “Oil is having a tug-of-war with China COVID-19 demand concerns getting countered with what appears to be a motivated top oil producing Saudi Arabia to keep the oil market tight,” said Edward Moya, senior market analyst with OANDA, in a note.
