Oil prices hold on to the weekly gains as investors are weighing concerns over a global economic recession and positive indications for Chinese demand following the lifting of the nation’s zero-tolerance policy on Covid-19 outbreaks.

A barrel of European reference crude Brent costs USD 84.30 Friday morning against USD 83.24 Thursday afternoon. At the same time, US counterpart West Texas Intermediate trades for USD 77.78 per barrel against USD 76.72 Thursday afternoon.

The current advance, which brings the weekly gain to 6% for WTI, comes after Thursday’s lowest trading price.

US Federal Reserve execs signaled further tightening of monetary policies in order to rein in inflation amid risks of a global recession looming over the market. 

The market is still waiting for a consistent rebound in Chinese demand following the easing of zero-tolerance Covid-19 restrictions, which some observers predict will drive the price of Brent crude back to USD 100 per barrel later on in the year.

However, options traders are betting that the price rally could arrive as early as late May.

”The market is seeing a recovery in demand, with mobility in China, the US and Europe all showing improvement,” says CITIC Futures analyst Gui Chenxi, according to Bloomberg News.

Oil prices will rise further if recession concerns ease up, she adds.