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Oil reached zero gains for the year with protests in China, until another factor ‘saved’ the trading session

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Beijing, Wuhan and other major cities have seen unrest over the weekend (Image: REUTERS/Carlos Garcia Rawlins)

You oil futures markets opened the week in the red, with investors monitoring developments in the protests in China and the possibility of a new cut by members of the OPEC.

Around 4:45 pm, the WTI (American reference) operated at a high of 1.19% and the Brent, down 0.86%. With that, Brent firmed its price at US$83/barrel, mitigating the lows of the day.

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Amid the ‘Covid Zero’ policy and the advance of daily cases, Beijing and other major centers of China witnessed protests over the weekend.

It is still not clear what the scale and nature of the protests are, or whether they are related only to the issue of covid-19.

More cutting in sight

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Oil markets were heading towards a sharp drop, until the possibility of a new production cut by OPEC+ member countries began to gain traction in negotiations. The movement imposes more restrictions on the supply of the commodity on the global market and helps to neutralize part of the instabilities blown from China.

The alliance of oil producers and exporters will meet on December 4th. Until then, “OPEC will continue to monitor market conditions,” as Mohammed Saadoon Mohson*, Iraqi government representative at OPEC, told Iraqi state media. Iraq is OPEC’s second largest oil producer,

Still in his speech, the Iraqi representative said he understood that a “fair price” for oil in 2022 would be around US$97/barrel, which could signal an understanding that new cuts should be made to recover the ground lost by the commodity in November.

*With information from S&P Global🇧🇷

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Source: Moneytimes

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