Oil surges on easing signals from China

The oil market fluctuated after signals that China will ease its pandemic measures. Oil fluctuated after a three-day rally, driven by signals of easing China’s zero-Covid policy and expectations for the OPEC+ meeting that will determine supply levels for 2023. US crude tested below $80. US crude oil had gained more than 5% in the first three sessions of the week. Brent crude also saw below $87. China’s official in charge of the fight against Covid-19 said that efforts were entering a new phase as vaccinations increased, another sign that Beijing may be changing its strategy. Following protests against strict measures, some changes became apparent as low-risk Covid patients in Beijing were allowed to isolate at home instead of in quarantine areas. Oil markets also followed statements by Fed Chair Jerome Powell on Wednesday that the Fed could ease the pace of tightening. Gains accelerated in riskier assets including commodities after Powell’s comments. The OPEC+ decision remains uncertain, but renewed production cuts are likely, said James Whistler, managing director at Vanir Global Markets in Singapore.