NEW DELHI: Following the announcement of relaxation of Covid norms in China, crude oil prices on Tuesday took a steep jump in the international market. Brent Crude Futures on Tuesday (November 29, 2022) was up by $1.91, or 2.30% and traded at $85.10 a barrel at 07.24 PM IST. The US West Texas Intermediate (WTI) rose by2.02% to $78.58 per barrel.
Emkay Global Financial Services is of the view that oil price may rise up to the medium term because of long and strong winter that may boost demand, ease in zero-Covid policy by China and Price capping of Russian oil.
“There were reports of China easing this policy and it led to some price uptick in the global markets. But China was quick to deny the easing of the restrictions around the Zero-COVID policy. Any development on this front will lead to a higher demand for crude thereby boosting prices,” said Ekmay Global Financial Service in its report.
The oil price has been volatile in the past 2-3 weeks due to various reasons. Brent Crude Future, the benchmark of crude price, was trading at $80.97 per barrel on Monday.