2022.11.2909:03:00UTC+00Oil Prices Climb On China COVID Optimism

Oil prices rose sharply on Tuesday after China reported a slight dip in new COVID-19 infections and stepped-up support for the country's property sector.

Benchmark Brent crude futures jumped 1.9 percent to $85.44 a barrel while WTI crude futures were up 1.7 percent at $78.53.

Markets ae excited about some sort of reopening, apparently to quell public anger against COVID-19 curbs.

According to a press briefing, China's health authorities today released a plan to boost vaccinations for elderly people and said they are "closely watching" the virus as it evolves and mutates.

A publicity campaign will be launched to fight vaccine hesitancy among the aged, promoting the benefits of vaccines in staving off severe illness and death, the National Health Commission said.

Meanwhile, traders bet that the Organization of the Petroleum Exporting Countries and allies including Russia, collectively known as OPEC+, will seriously consider a new production cut at its meeting early next month to achieve balance and stability in the market.

Saudi Energy Minister Abdulaziz bin Salman had indicated last week that the OPEC+ will take further measures, if needed, amid rising recession fears. OPEC+ will meet on December 4 to discuss their production strategy. The group had last month agreed to reduce its output target by 2 million barrels per day through 2023.