China rebounds in oil prices

The price of a barrel of Brent oil rose more than 4 percent to $98.81 yesterday. Thus, the price of oil, which closed for the third consecutive week on the rise, reached the maximum of both months.

The expectation that China will relax its Covid-19 measures and demand will rise, brought a sharp rise in oil prices yesterday, along with many commodities.

Oil prices, which have been fluctuating between tighter supply prospects and news of the global economic slowdown, rose on news from China, the world’s biggest oil importer, and hit the highest levels since August.

DISRUPTION, SANCTIONS AND GEOPOLITICAL RISKS

Bloomberg noted that the new sanctions that will come into force against Russian oil in December also have a growing effect on crude prices.

Ed Moya, a senior market analyst at US brokerage Oanda, said there is too much geopolitical risk to keep oil prices high and if the dollar’s slide continues, oil’s rally could continue.

Dennis Kissler, senior vice president at US-based Bok Financial Securities, noted that the news that some Covid restrictions will be relaxed in China, especially air travel, is positive for oil demand in the short term.

It is estimated that the zero cases policy in China will cause a drop of around 400,000 barrels per day in oil demand in 2022.

The great decision to cut production made by the OPEC+ countries led by Saudi Arabia and Russia at the beginning of October also had an impact on the rise in prices in the last month.

IS THERE A HIGH ON FUEL?

With the effect of the recent increases in the prices of oil and its products, yesterday there was a rise of 1 lira and 31 cents in gasoline.

The rise in oil can bring new increases in the prices of gasoline and diesel.

The price of a liter of gasoline is approximately 22.68 TL in Istanbul, 22.83 TL in Ankara and İzmir.

A liter of diesel is sold for approximately TL 26.33 in Istanbul, TL 26.46 in Ankara and TL 26.49 in Izmir.