Oil Prices Rise as US Storm Triggers Production Worries

Oil prices rose to three-week highs on Tuesday as China's latest easing of Covid-19 restrictions spurred fuel demand hopes, while concerns that winter storms across the United States are affecting energy production continued to support prices.
Brent crude was up 52 cents, or 0.6%, at $84.44 a barrel, while US West Texas Intermediate crude was at $80.04 a barrel, up 48 cents, or 0.6%. 
They hit their highest since Dec. 5 earlier in the session, CNBC reported.
British and US markets were closed on Monday for the Christmas holiday.
China will end its quarantine requirements for inbound travelers starting on Jan. 8, the National Health Commission said on Monday, dropping a rule in place since the start of the pandemic three years ago. 
That raised optimism of higher demand from the top crude oil importer.
"Oil demand recovery is in sight for China, which is great news for the refining sector," said Serena Huang, the head of APAC analysis at Vortexa.
“The greenback softened after China said it would drop its quarantine rule. A weaker dollar makes oil cheaper for holders of other currencies.
Oil prices are also drawing support from worries about supply disruption due to winter storms in the United States,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.