Oil rose on optimism that China’s recovery is gathering pace following the end of the nation’s restrictive Covid Zero policy late last year.
(Bloomberg) — Oil rose on optimism that China’s recovery is gathering pace following the end of the nation’s restrictive Covid Zero policy late last year.
West Texas Intermediate futures for April delivery climbed 1% to trade above $77 a barrel from Friday’s close. There was no settlement Monday due to the US holiday and transactions will be booked Tuesday. China has ramped up its purchases of crude — especially from Russia — as economic activity grows.
See also: Commodities Demand Signals in China Are Starting to Pick Up
The market has endured a choppy start to the year, whipsawed by optimism over China’s demand outlook and persistent concerns over a global economic slowdown. The prospect of further monetary tightening by the Federal Reserve to combat inflation has added to headwinds.
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