Oil Posts Biggest Weekly Gain in a Month as Volatility Spikes
- China softens its virus approach that prompted growth concerns
- Fed fears and Russian price cap brings four-day rally to end
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Oil posted its biggest weekly gain in a month, after a volatile week marked by China loosening Covid restrictions and speculation on OPEC+ output policy.
Front-month volatility jumped to 53% earlier this week, the highest since September, with crude trading in a $10 range. Speculation of OPEC+ output cuts sent crude swinging as traders tried to foretell what the cartel might decide over the weekend. Prices got a boost as China, facing extraordinary unrest, began to ease Covid-Zero policies, aiding the outlook for energy consumption.