Oil prices mixed amid demand, supply uncertainties

By Sibel Morrow

ANKARA (AA) - Both oil benchmark prices were mixed amid rapid fluctuations in demand due to China reporting the second COVID death in the last six months, as well as supply uncertainties as investors await the upcoming OPEC+ meeting and EU sanctions on Russian oil exports.

International benchmark Brent crude traded at $87.48 per barrel at 10.08 a.m. local time (0708 GMT), a 0.03% increase from the closing price of $87.45 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $79.97 per barrel at the same time, a 0.08% loss after the previous session closed at $80.04 a barrel.

Lower demand fears grew in support of lower price movements in China, the world's largest oil importing country, after the country reported the second COVID death in the last six months.

China is already facing weak demand over its strict "Zero-COVID" policy, which aims to suppress COVID-19 cases where they occur and break the chain of transmission by requiring lockdowns, widespread testing, intensive contact tracing and quarantines.

Prices slid almost $6 a barrel during previous trading on reports that OPEC+ oil producers may consider increasing output by up to 500,000 barrels per day at their upcoming meeting on Dec. 4.

However, both benchmarks recovered their losses after Saudi Arabia's state news agency quoted Saudi Energy Minister Abdulaziz bin Salman as saying the country's output policy would not change.

The looming Dec. 5 sanctions deadline on Russian oil exports to Europe is also weighing on the market, supporting upticks in prices.