Oil prices are trading in a volatile pattern as traders digest news of an output cut by OPEC+ and
reports of more COVID-19 lockdowns in China.
Brent crude oil, the international benchmark, fell below $94 U.S. a barrel after the Organization
of Petroleum Exporting Countries and its allies (OPEC+) agreed to cut 100,000 barrels a day of
production.
Renewed COVID-19 lockdowns in China have prompted fears of a global slowdown that have
weighed on oil prices in recent months despite efforts by the Group of Seven leading
industrialized nations (G7) to cap the price of Russian oil exports.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is trading around $87 U.S. per
barrel. Oil prices are now hovering close to the lower end of their recent trading range.
The first OPEC+ supply cut in more than a year showed the group is determined to manage
crude markets and willing to take action, according to the Saudi Arabian government.
However, the lower-than-expected output cut by OPEC+, coupled with concerns about a
manufacturing slowdown in China, is pulling oil prices lower.
