Oil prices recovered some ground on Monday following a session-long decline of more than $2 per barrel after China’s demands grow.
The change happened due to China’s reopening and oil demand revival trumped concerns of a worldwide recession.
Brent oil prices rose to 72 cents, or 0.9 percent, to $79.76 per barrel, while US West Texas Intermediate crude was up 60 cents, or 0.8 percent, to $74.89 per barrel.
CMC Markets analyst Tina Teng said, “Despite a surge in Covid cases, the reopening optimism and accommodative policy improve oil’s demand outlook.”
After Beijing loosened mobility limitations, China is now suffering the first of three waves of COVID-19 cases.
According to Friday’s Caixin news report, China intended to expand flights to bring the nation’s average daily passenger travel volumes back to 2019 levels by January 6.
In November, China’s exports of diesel and gasoline reached their highest level in more than a year as refiners hurried to sell off increasing inventories and exhaust their export quotas for 2022.
