Oil prices were mixed in early trading on Tuesday after oil producers in the OPEC+ group agreed to slightly cut production for October and amid fears of weak demand in the world’s second-largest oil consumer China from its ongoing strict pandemic restrictions.
International benchmark Brent crude traded at $95.47 per barrel at 09.51 a.m. local time (0651GMT) for a 0.28% loss from the closing price of $95.74 a barrel in the previous trading session.
American benchmark West Texas Intermediate (WTI) was at $89.11 per barrel at the same time for a 2.58% rise after the previous session closed at $86.87 a barrel.
The world's biggest oil producers of Organization of Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, agreed Monday to cut production by 100,000 barrels per day in October.
The group blamed the adverse impact of volatility and the decline in liquidity on the current oil market, and noted the need to support efficient market functioning for stability.
The decision came amid supply fears as EU countries boosted sanctions on Russian oil products while the latter counterattacked by cutting natural gas flow on the Nord Stream gas pipeline carrying Russian gas to Europe.
Meanwhile, EU countries are struggling with rising energy prices and scarcity of energy sources after Russia cut gas supplies for an indeterminate time.
In China, however, the country announced fresh pandemic mitigation measures. In the western city of Chengdu, the government extended lockdowns in response to recent COVID-19 outbreaks.
Shenzhen, a southernmost technology center, said it would implement tier-based anti-virus restriction measures starting Monday. A new round of COVID-19 testing was announced in Shenzhen, which came under lockdown on Saturday, and management said more lockdowns are on the table if the situation deteriorates.