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At
the same time, in a positive sign for fuel demand in the world's
top oil importer, more Chinese cities eased COVID-19 curbs over
the weekend.
Brent crude futures were last up $2.29, or 2.7%, to $87.86 a
barrel at 1200 GMT, while WTI crude futures gained $2.24, or
2.8%, to $82.22 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and
allies including Russia, together called OPEC+, agreed on Sunday
to stick to their October plan to cut output by 2 million
barrels per day (bpd) from November through 2023.
"The decision ... is not a surprise, given the uncertainty in
the market over the impact of the Dec. 5 EU Russia crude oil
import ban and the G7 price cap," said Ann-Louise Hittle, vice
president of consultancy Wood Mackenzie.
"In addition, the producers’ group faces downside risk from the
potential for weakening global economic growth and China’s zero
Covid policy."
The Group of Seven (G7) countries and Australia last week agreed
on a $60-a-barrel price cap on seaborne Russian oil.
Business and manufacturing activity in China, the world's second
largest economy, have been hit this year amid strict measures to
curb the spread of the coronavirus.
Persistent sluggishness in China's economy could reverse oil's
price gains, said Leon Li, a Shanghai-based analyst at CMC
Markets.
"The current economic data of China is still weak ... It is
challenging to drive the demand for crude oil," said Li.
(Additional reporting by Sonali Paul in Melbourne and Emily Chow
in Singapore; Editing by Kirsten Donovan)
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