WTI rises amid raised appetite

WTI crude oil rose on Tuesday on recession linked concerns. The overall scene boosted risk assets to rally. Output cut by OPEC+ next month as well as the Fed’s policy decision on November 3 are two additional factors. WTI crude oil trades at $84.69 per barrel, trading 0.17% higher between a low of $83.08 and $86.01.

Crude oil is trying to recover from the start of the week’s decline that followed weak delayed economic data in China that raised concerns over demand. Q3 Gross Domestic Demand came in at 3.9% YoY, while Retail Sales growth slowed to 2.5% in September due to ongoing virus controls which weighed on market sentiment.

The recent recovery in China’s oil imports was hesitant in September. Independent refiners were not able to exploit increased quotas amid ongoing lockdowns weighing on demand. This was exacerbated by falling refinery margins and product export curbs.

Oil shipments from Russia fell to a five-week low in the seven days to 21 October. Oil price correction came in light of better earnings reports and speculation that the monetary policy tightening cycle may be nearing its end while Tuesday’s US data came disappointing.