- Oil extended gains on Tuesday morning following rumors that OPEC+ will discuss production cuts at its December 4
- The news (rumor) of a possible OPEC+ cut yesterday overpowered bearish sentiment surrounding Chinese oil demand growth. China is experiencing record Covid cases and anti-lockdown protests, stirring fears of more draconian measures from the Chinese government
- “ The structure of the market seemingly justifies a deeper reduction,” by OPEC+, RBC Capital Markets analysts including Helima Croft said in a note to clients (Bloomberg)
- “The same dynamics that OPEC had voiced concerns about nearly two months ago are now visible in the forward curve.”
- China is refining its approach to dealing with Covid-19 by boosting vaccinations (Bloomberg)
- Oil prices rose as Beijing said it would bolster vaccination among seniors, a move is seen as crucial to China reopening its economy
- The moves come as the Chinese populous erupted in protest over Covid Zero mobility curbs