Prices Higher On China Hopes, Steady OPEC+ Output, More Sanctions On Russia

MNI (Australia) - Oil prices have risen today by around 1% after falling during NY trading on Friday. WTI is now over the $80 mark at around $80.80/bbl after reaching a high of $81.84 earlier and Brent is about $86.50 after a high of $87.60. Better global growth sentiment driven by moves from China towards reopening has put downward pressure on the USD (-0.4%) and boosted commodities.

• WTI oil prices are now just above the 10-day simple MA. Bearish activity would resume at $73.60. Key resistance is at $89.35, 50-day EMA, and a clear break would change the trend.
• OPEC+ confirmed its previously announced output cut of 2mbd at its meeting on the weekend but didn’t increase it as markets had feared earlier last week.
• The G7 oil price cap of $60/bbl on Russian crude comes into effect today, as well as an EU ban on most imports by sea. The impact of these measures on global supply is uncertain. Russia has said it won’t sell to the countries that have signed up for the cap plus there are large consumers such as China and India that are likely to continue buying Russian oil.
• Tonight the November PMIs in Europe and the US are released and the US ISM services index prints.