Oil prices jumped 2% today, Monday, after the “OPEC Plus” countries kept their production targets before the European Union banned and put a ceiling on Russian crude, which takes effect from today.

On the other hand, the dollar generally fell below 7 yuan.

Meanwhile, in a positive sign for fuel demand, more Chinese cities eased anti-COVID-19 restrictions over the weekend.

Brent crude futures rose 2.7%, to $87.86 a barrel by 12:00 UTC, while US West Texas Intermediate crude futures rose 2.8%, to $82.22 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and allied countries - including Russia - called the "OPEC Plus" group agreed yesterday to adhere to an agreement, last October, which was to reduce production by two million barrels per day, starting from last November until end of 2023.

Analysts said that the “OPEC Plus” decision was expected, with major producers waiting to know the impact of the European Union ban on imports and the decision of the Group of Seven industrialized countries to put a ceiling on the price of Russian oil transported by sea at $ 60 a barrel, with Moscow threatening to cut supplies to any country that adheres to this ceiling. .

Anne-Louise Heitel, vice president of Wood Mackenzie, said in a note that the European Union would have to replace Russian crude by buying oil from the Middle East, West Africa and the United States, which should put a floor in oil prices at least in the near term.


The dollar fell

The dollar fell in general today, after a difficult week, to drop below 7 yuan, as sentiment towards higher-risk assets improved after signs that China would ease some restrictions related to Covid-19.

And more Chinese cities - including the financial center Shanghai and Urumqi in the far west - announced easing restrictions imposed to combat Corona at the weekend, in the wake of unprecedented protests against the "zero Covid" policy.

The dollar fell to less than 7 yuan in foreign trade, while the yuan jumped in internal trading by about 1.4% to 6.9507 per dollar this morning, which is the strongest level since September 13th.

The dollar index - which measures the performance of the US currency against 6 major currencies, including the yen and the euro - fell 0.18% to 104.28 points, the lowest level since June 28.

Investors will focus on US consumer price inflation data due on December 13, one day before the Federal Reserve concludes its two-day policy meeting.

The US central bank is expected to raise interest rates by an additional 50 basis points at the meeting.

For other currencies:

  • The Japanese yen fell to 134.37 against the dollar.

  • The euro rose to $1.0578.

  • The pound sterling rose to $1.23450.

  • The Australian dollar rose to $0.684.

  • The New Zealand dollar increased to $0.643.