Oil quotations are recovering moderately on Thursday after the collapse in the previous session. November futures on Brent grew by $0.52 (0.59%) up to $88.52 per barrel on London’s ICE Futures Exchange.

By the indicated time quotations for WTI futures for October grew by $0.52 (0.63%) up to $82.46 per barrel at NYMEX.

Why is oil going up in price?

The day before, Brent dropped 5.2% to its lowest level since Jan. 24, and WTI crashed 5.7%, to its lowest level since Jan. 11, amid fears of further interest rate hikes by world central banks and data on declining oil imports by China.

“The decline the day before was driven by lingering fears of growth-killing rate hike risks from inflation-targeting central banks and China’s ongoing economic problems stemming from its “zero tolerance” coronavirus policy,” said Saxo Bank analyst Ole Hansen.

At the beginning of the week some support to the market was given by the decision of OPEC+ to reduce the production quota for October by 100 thousand barrels per day against September.

At the same time, analysts of JPMorgan believe that the group may have to reduce production by 1 mln bpd to end the downward trend and bring the physical oil market in line with the oil derivatives market.

Earlier we reported that Shell and Exxon Mobil decided to sell NAM, the Dutch oil company producing gas in Europe.