That’s why oil prices are rising – possible changes in China’s corona course support

Quotations were supported by speculation about a reduction in China’s measures to combat the corona virus and a surprise drop in US oil reserves. A barrel (159 liters) of North Sea Brent with delivery in December cost 93.07 US dollars in the morning. That was 66 cents more than the day before. The price of a barrel of US West Texas Intermediate (WTI) grade for delivery in November rose by $1.24 to $86.79.

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Market observers referred to a report by the Bloomberg news agency. Accordingly, the Chinese leadership is discussing a partial withdrawal of measures to combat the spread of the corona virus. Apparently, the quarantine measures are to be restricted, as Bloomberg reports, citing informed circles. Most recently, the government’s tough corona course in Beijing had slowed down the country’s economy, which had repeatedly triggered concerns about demand on the oil market.

In addition, reference was made to the development of oil reserves in the USA. The US government reported on Wednesday that US crude oil inventories fell by 1.7 million barrels to 437.4 million barrels last week. Analysts, however, had expected an increase of 2.5 million barrels. Declining US oil reserves usually support oil prices.

/jkr/mis

SINGAPORE (dpa-AFX)

Image sources: ssuaphotos / Shutterstock.com

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