Oil Pares Gains as Equity Weakness Counters China Covid Optimism

  • China’s Covid Zero policy has hit its economy, sapping demand
  • WTI settled little changed near $86 a barrel on Thursday
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Oil settled little changed, paring earlier gains, after a drop in broader equity markets countered optimism that China may ease quarantine restrictions.

West Texas Intermediate’s more active December futures contract settled near $85 a barrel after a choppy session. Prices have been oscillating within a narrow band since late-September, taking cues from fluctuating risk sentiment in broader markets. Earlier in the session, prices rallied as Chinese bureaucrats debated whether to reduce mandatory-quarantine periods for visitors.