Oil prices stabilized after a volatile session as investors were hit by foggy supply expectations and fears over weak demand in corona-hit China, as the virus outbreak returns and record highs again in the number of people infected nationwide.
WTI has stabilized above $80 a barrel after trading in a $5 swing range in the opening session of the week. Prices fell following a report that OPEC+ was considering ramping up production, but then rallied to end a slight change after the Saudi Energy Minister denied the report.
Read more: UAE Energy Minister: No discussions with OPEC+ members on production cuts
Oil prices didn’t change much after a choppy session, as Prince Abdulaziz bin Salman denied a report discussing increased production. Brent crude oil settled at $87 a barrel, as of 7 GMT.
Crude oil consumption trends in China remain in the spotlight as recurring coronavirus outbreaks prompt officials to press lockdowns and tighten restrictions on movement. This hurt the demand outlook, just weeks after investors speculated Beijing might abandon its tough stance on anti-coronavirus measures. 27,307 cases of infection were recorded on Monday, just below the peak recorded in April.
Oil prices fell this month on demand concerns and with the countdown to new EU sanctions on Russian oil and a complementary G7 price cap plan. The package of measures aims to increase pressure on Moscow to stop the war in Ukraine while avoiding an inflationary rise in crude oil prices, according to Bloomberg.
Just two weeks after EU restrictions came into effect, Russia has already lost more than 90% of its market in the Nordic countries. Moscow does not plan to supply crude or petroleum products to countries enforcing the Russian oil price cap, details of which could be announced as early as Wednesday.
