China casts a shadow over rallying oil prices

Oil prices, which rallied with the effect of the 100 thousand barrel production cut decision from the Organization of the Petroleum Exporting Countries, or OPEC coalition, experienced a decline in momentum after the news of the expansion of shutdowns in China. The momentum provided by the OPEC+ coalition in oil prices lost energy with the expansion of shutdowns in China.

In the oil market, the divergence between two important benchmark prices was emphasized. While Brent oil tested a level below 95 dollars, US crude oil rose above 90 dollars with an increase of more than 2 percent. Brent oil rose more than 4 percent on the first trading day of the week with the effect of OPEC+'s production decision. The Organization of the Petroleum Exporting Countries had decided to slightly reduce oil supply for October in a period of the longest price decline in the last two years in the shadow of recession expectations. OPEC announced that they will reduce oil production by 100 thousand barrels a day next month to August levels. Thus, the production increase planned for September, following the call of US President Joe Biden in September, will be reversed in October. The decision comes as oil-consuming countries are under inflationary pressures, with oil prices also affected, and on the brink of an energy crisis ahead of the coming winter. Oil markets are also closely monitoring developments in China, the world's largest oil importer. Epidemic measures continue to expand in China. In addition to the extended restrictions in Chengdu, the capital of the Sichuan region, measures have been introduced for Guiyang, a city of 6 million in the mountainous southern region of Guizhou. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!