CDN NEWS | 
US NEWS 
Sep 6, 2022
(Bloomberg)
Oil fell, with a post-OPEC+ meeting rally fizzling out, as traders weighed the group’s output cut as well as further lockdowns in China.
Global benchmark Brent slid below $94 a barrel after ending almost 3% higher on Monday as the Organization of Petroleum Exporting Countries and allies including Russia agreed to shave a modest 100,000 barrels a day off production.
Though Saudi Arabia said after the decision that the group was willing to take additional action to support the oil market if that were needed, crude is hovering close to the lower end of its recent trading range. Virus-related lockdowns in China are also spreading, re-igniting fears of a global slowdown that have weighed on oil prices in recent months despite efforts by G-7 nations to cap the price of Russian exports.
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The first OPEC+ supply cut in more than a year showed the group is serious about managing crude markets and willing to take preemptive action, according to Saudi Arabia. “The simple tweak shows that we will be attentive, preemptive and pro-active,” Energy Minister Prince Abdulaziz bin Salman told Bloomberg.
The group’s move “signals a willingness to resume active market management to avert a major sell-off due to recession concerns or expectations of policy-driven supply increases,” RBC Capital Markets LLC analysts including Helima Croft said in a note. “They are seeking to put short-sellers on notice that they will not easily surrender the recent gains and go gently into the night.”
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