continued oil prices Its gains on Monday were supported by a weak dollar and tight supplies, which offset fears regarding a recession and the possibility that widespread shutdowns in China to combat “Covid-19” will once more reduce demand for fuel.
Brent crude futures rose $4.55, or 4.7 percent, to $105.9 a barrel, following a 2.1 percent gain on Friday.
US West Texas Intermediate crude futures also rose by regarding $5, or 4.55%, to reach $102 a barrel, following rising by 1.9% in the previous session.
The US dollar retreated from multi-year highs on Monday, supporting the prices of commodities ranging from gold to oil.
A weak dollar makes dollar-denominated commodities more accessible to holders of other currencies.
Last week, Brent and West Texas Intermediate posted their biggest weekly declines in regarding a month amid fears of a recession hurting oil demand.
Mass testing for COVID-19 continued in parts of China this week, raising concerns regarding oil demand in the world’s second-largest oil consumer.
However, oil supplies remained tight, supporting prices.
China, the world’s second-largest oil consumer, on Sunday reported 691 new COVID-19 cases on Saturday, up from 547 the day before, while locally transmitted cases recorded their highest levels since May 23.
“Oil is opening the week more smoothly as the market absorbs the impact of the rise in new (Covid) cases in China on demand, while the market is cautiously awaiting an important event if the flow of goods resumes,” said Stephen Innes, managing partner at SBI Asset Management. Gas from Russia to Europe via Nord Stream 1 later this week.
The Nord Stream 1 pipeline, the largest system to transport Russian natural gas to Germany, began annual maintenance work on July 11, and is scheduled to last for 10 days.
Governments, markets and companies fear that the lockdown will be extended due to the war in Ukraine.
A halt to this gas supply would damage Germany, the world’s fourth-largest economy, and increase the possibility of a recession.
