Oil prices edged up on Monday, a day after travelers streamed into China following a reopening of borders that lifted the fuel demand outlook and partly offset concerns of global recession.
Brent crude futures had risen 53 cents, or 0.7%, to $79.10 a barrel by 0114 GMT while U.S. West Texas Intermediate crude was at $74.23 a barrel, up 46 cents, or 0.6%. Hopes for less-aggressive U.S. interest rate rises are buoying financial markets and depressing the dollar. A weaker greenback makes dollar-denominated commodities more affordable for investors holding other currencies.
Both Brent and WTI tumbled more than 8% last week, their biggest weekly dives at the start of a year since 2016. “Crude oil futures had their biggest weekly losses in a month due to recession fears as oil prices have been positively correlated with inflation since 2022, though China’s reopening may buffer the decline in the near term,” CMC Markets analyst Tina Teng said in a note.
China, the world’s second-biggest oil consumer, opened its borders on Saturday for the first time in three years, buoying the outlook for its demand for transportation fuels.
REUTERS
