Oil prices rose 1% today, Monday, and reached $88.50 a barrel, to continue their gains following last week.
-
Oil prices rose 1% today, Monday, to 88.50
Oil prices rose 1% today, Monday, to $88.50 a barrel, extending their gains from last week on the back of stronger expectations, with the expected economic recovery this year in China, the largest oil importer.
Brent crude futures rose 88 cents, or 1%, to $88.51 a barrel, by 1247 GMT, the highest level since November 18, and West Texas Intermediate crude futures rose 76 cents, or 0.93%, to $82.40.
Last week, Brent rose 2.8%, while US crude rose 1.8%.
Asian trading was slower, due to the Lunar New Year holiday, but analysts said that “optimism” related to China’s reopening is likely to push oil prices higher.
Commodities analysts at ANZ Corporation said in a note that the data “shows a strong recovery in travel in China, following the easing of Covid-19 restrictions,” noting a “22% jump in road traffic so far this month.” compared to the previous year, in 15 major cities in the country.
International Energy Agency chief Fatih Birol said on Friday that “energy markets may experience a shortage of supply this year, if the Chinese economy recovers in the way financial institutions expect.”
The jump in traffic in China ahead of the Lunar New Year holiday gives cause for optimism, especially on fuel demand following the two-week holiday.
And she was Oil prices fell in the middle of last week bAfter concerns regarding a possible recession in the United States dispelled any optimism that the lifting of restrictions related to “Covid-19” in China would lead to an increase in demand for crude in the largest oil importer in the world.
“The expected increase in demand comes as the market prepares for more sanctions on Russian oil,” ANZ analysts said.
The EU-G7 alliance will set a cap on Russian refined product prices, starting February 5, in addition to the cap imposed on Russian crude oil prices since December and the EU ban on Russian crude imports through Sea.
The Group of Seven agreed to postpone the review of the level of the Russian oil price ceiling to March, a month later than originally scheduled, to give an opportunity to assess the consequences of imposing a ceiling on the prices of oil products.
