Oil rises as traders eye OPEC+ meeting for cues on production
BNN Bloomberg
Oil rose to trade above US$78 a barrel as traders awaited an OPEC+ producer meeting on Wednesday that’s expected to provide clues on the trajectory of global supplies.
The OPEC+ advisory committee isn’t expected to change its production outlook, which would put upward pressure on prices as China’s lifting of COVID-19 restrictions increases global demand. Crude’s rally on Tuesday also was bolstered by risk-on sentiment in equity markets after economic data provided optimism that inflation is cooling and the Federal Reserve will be able to pause rate hikes.
Oil has swung back and forth in January, dominated by two separate narratives. Pulling crude higher are projections that China’s rising demand would increase purchases by the world’s largest oil importer. Meanwhile, analysts have been pessimistic on the outlook for the US economy as the Federal Reserve continues to raise interest rates, making a slowdown more likely.
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