Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Oil prices decline amid protests in China


November, 28 2022
watermark Economic news

Monday began with a sharp drop in the oil market amid a general decline in investor appetite for risk caused by news of protests against covid restrictions taking place in China.


Last week's trading ended with Brent rising to $86.90 per barrel. The current quote of the asset is $81.05 per barrel. North American WTI crude oil fell to $73.80 after rising to $79.90 last Friday. 


According to the latest news, mass protests were held in many cities of China, including the capital, against the restrictive measures imposed by the Chinese authorities due to COVID-19. The country has a «zero tolerance» policy for the coronavirus, which includes strict travel bans, lockdowns and strict quarantine for anyone who has had any contact with infected people. 


The wave of protests in China contributes to the strengthening of the US dollar, which, in turn, reduces the attractiveness of investments in raw materials. In addition, there is a high probability of further significant tightening of restrictions by the Chinese authorities, which will again worsen the prospects for the oil market and demand. 


At the moment, the demand for oil in China in the fourth quarter will decrease to 15.11 million barrels per day compared to 15.82 million b/d a year earlier.


In addition to the situation in China, the negotiations of European countries on the introduction of a ceiling on prices for Russian oil continue to have an impact on the oil market. Analysts believe that if a low price limit is set (below $65-70 per barrel) and supplies from the Russian Federation are suspended, the oil market may receive an upward impulse.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.