A recap on Tuesday oil moves via ANZ, a good summary of where we are at:
Crude oil fell as rising cases of COVID-19 weighed on sentiment.
- Xinjian reported its fourth highest number of new cases nationally on Monday.
- Inner Mongolia, which was sealed off in early October, saw cases jump to almost 1800.
- New infections in the province of Henan almost doubled.
This comes following rumours that Beijing was looking to options to ease restrictions. However, that was quashed earlier this week after officials at China’s National Health Commission said the country will unswervingly adhere to current virus controls.
Despite the fall, crude oil traded in a tight range amid concerns of supply shortages.
- OPEC has begun reducing output in line with their agreement to reduce quotas by 2mb/d at its last meeting.
Traders are also positioning ahead of the 5 Dec deadline for European sanctions of Russian oil.
