Oil recovers after choppy session of OPEC+ supply speculation
BNN Bloomberg
Oil rose after a choppy session on Monday as investors juggled an uncertain supply outlook with concerns that demand in virus-hit China will slip further.
West Texas Intermediate rose 2 per cent to trade above US$81 a barrel on Tuesday. Prices firmed after a bumpy session that saw crude briefly plunge on speculation OPEC+ was considering an output hike. Group leader Saudi Arabia and fellow Gulf producer Kuwait both rejected the suggestion, prompting a recovery. The dollar also fell on Tuesday, boosting commodities priced in the currency.
Covid concerns have led oil prices lower this month. Looming European sanctions on Russian flows -- and a Group of Seven price-cap plan -- have boosted uncertainty, with Chinese buyers pausing some Russian purchases. The cloudy outlook across the market has affected liquidity, with open interest for WTI the lowest since 2014.
