Rapid pullback in crude oil

During the golden week holiday in the beginning of Oct in China, crude oil price surged on the back of OPEC+ production cuts. After the holiday, however, the pandemic resurged in several regions in China, and People’s Daily stressed the significance of “dynamic zero” policy on Oct 11. In addition, the market assessed that OPEC+’s production cuts could only have a symbolic meaning and its production had not been reaching the quota. Meanwhile, OPEC and EIA both revised down crude oil demand forecast.