Oil remains stable as focus is on China's crude demand
Oil prices hold steady highest level since early December as traders await fresh signals on crude demand in China, which has loosened its Covid-19 restrictions.
A barrel of European reference oil Brent costs USD 88.06 against USD 88.85 Monday afternoon. Meanwhile, US counterpart West Texas Intermediate trades for USD 81.60 per barrel against USD 82.36 Monday afternoon.
Oil prices have been driven higher in the past two weeks on the heels of an expected recovery in China, the world’s biggest crude importer. This could bring daily consumption to new highs in 2023 in pace with increased mobility and industrial activity.
Traders are also watching the impact of increased restrictions on Russian energy flows imposed by the EU and the US in response to Russia’s invasion of Ukraine.
”Signs of positive fundamentals across most commodity markets helped boost sentiment,” reports Australia & New Zealand Banking Group in a note cited by Bloomberg News:
”Optimism on demand from China’s reopening is strong.”
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