Oil prices rose on Tuesday due to an expected rebound in demand in China as the world's second-largest economy eased strict restrictions imposed to contain the Covid-19 pandemic, and amid doubts that The targeted increase in production by OPEC + producers will reduce the supply scarcity.
Today, Brent crude futures recorded a rise of 0.6%, or the equivalent of 76 cents, to reach $120.27 a barrel.
US West Texas Intermediate crude futures also rose by 0.7%, or 83 cents, at $119.33 a barrel.
Life in Beijing and Shanghai, the commercial hub, has returned to normal in recent days, after two months of strict closures to stem outbreaks of the Omicron mutated coronavirus. Traffic bans were lifted and restaurants opened for dine-in service on Monday in most parts of Beijing.
We could see an increase in fuel demand as cars return to the roads in major cities, and the return of cars to the roads in major cities, said CMC Markets analyst Tina Ting. Ports gradually return to normal operation in China.
Saudi Arabia, the largest oil exporter, raised the July official selling price for its Arab Light crude to Asia by $2.10 from June at a premium of $6.50 over the average. Oman/Dubai crude, away from the highs recorded in May when prices rose to significant levels on fears of Russian supply disruptions.
Last week, the Organization of the Petroleum Exporting Countries and its allies, all known as OPEC+, decided to increase production for the months of July and August by 648,000 barrels per day, or an increase 50% more than previously planned.
On the other hand, a preliminary poll by Reuters showed, on Monday, that US crude stocks likely fell last week, while gasoline and distillate stocks rose.
