Oil Prices Rise On Hope As China Started Reopening

Oil prices surged on Wednesday as the market was optimistic about the fuel demand since China continues to ease its COVID-19 restrictions. Brent futures for February delivery rose 31 cents to $84.64 a barrel, a 0.4% gain, by 0117 GMT. Besides, US crude advanced 22 cents or 0.3%, to $79.75 per barrel. Both standard prices hit their highest level in three weeks on Tuesday, 27 December. 

The expectation for a boost in fuel demand in China comes as the world’s second-biggest economy moves towards reopening its borders after three years of continuous lockdown and curbs on movement and business to counter the spread of COVID-19. 

According to President Vladimir Putin, prices were also affected by the news that Russia aims to ban oil sales from February 1 to countries that abide by the G7 cap imposed

On the other hand, US output has been disrupted by an Arctic blast sending temperatures below freezing, cutting oil and gas production from North Dakota and Texas. Meanwhile, US crude oil stockpiles likely fell by 1.6 million barrels, with distilled inventories also seen down, according to a Reuters poll. 

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