Oil prices climbed on Monday as China’s reopening of its borders eased concerns about fuel demand.
Persecondnews.com reports that Brent, the benchmark for two thirds of the world’s oil, was 3.27 per cent higher at $81.14 a barrel at 10.52am Nigerian time while West Texas Intermediate, the gauge that tracks US crude, was up 3.50 per cent at $76.35 a barrel.
China’s near-total reversal of border controls — introduced to stem the spread of Covid-19 — came into effect on Sunday.
The reopening ended about three years of strict entry requirements that had slowed growth in the world’s second-largest economy and biggest crude oil importer.
Both Brent and WTI benchmarks declined by more than 8 per cent last week, their biggest weekly loss in the first seven days of a new year since 2016.
“Forecasts suggest a strong airline demand in the Lunar New Year period.”