[ad_1]
Oil prices rebounded from the previous week’s sharp losses with traders betting on increased demand as Beijing continued to ease COVID-19 restrictions and open up the world’s second biggest economy.
Price action
-
West Texas Intermediate crude for February delivery
CL00,
+3.38% ,CLG23,
+3.38%
rose $2.33, or 3.1%, to $76.06 a barrel on the New York Mercantile Exchange -
March Brent crude
BRN00,
+3.11% ,BRNH23,
+3.11% ,
the global benchmark, added $2.25, or 2.9%, to $80.82 a barrel on ICE Futures Europe. -
Back on Nymex, February gasoline
RBG23,
+3.59%
advanced 3.4% to $2.3208 a gallon, while February heating oil
HOG23,
+2.95%
tacked on 2.7% to $3.0858 a gallon. -
February natural gas
NGG23,
+4.23%
climbed 4.7%, to $3.886 per million British thermal units.
What’s driving markets
Oil prices rose sharply on Monday as traders hoped that Beijing’s further easing of COVID-19 restrictions would open up China’s economy — the world’s biggest crude importer — and help boost energy demand.
“Oil prices are finally catching a flyer over the China border reopening as the removal of local restrictions, inter/intra-provincial mobility normalization, lifting of border restrictions between China/HK/Macau and international travel reopening are strong tailwinds for oil markets,” said Stephen Innes, managing partner at SPI Asset Management.
The rally comes after both Brent and West Texas Intermediate fell more than 8% last week on worries about a global economic downturn and as warmer weather in the northern hemisphere was seen reducing heating demand.
However, investors concerns about a hard economic landing for the U.S. have abated since Friday’s jobs data, which suggested the labor market could stay relatively healthy and wage inflation ease at the same time.
The improved sentiment has boosted traders’ risk appetite, hitting the dollar and thus providing additional support to commodity prices — such as crude — that are denominated in the greenback.
[ad_2]
Source link
