Oil Rises on Demand Optimism

Oil Rises on Demand Optimism
Oil Rises on Demand Optimism

Oil prices climbed on Monday as the borders reopened in China, the world's top crude importer, boosting the outlook for fuel demand growth and offsetting global recession concerns.
Brent crude futures were up $1.49, or 1.9%, at $80.06 a barrel, while US West Texas Intermediate crude rose $1.43, or 1.9%, to $75.20, Reuters reported.
Hopes for less-aggressive US interest rate rises are buoying financial markets and depressing the dollar. 
A weaker US currency makes dollar-denominated commodities more affordable for investors holding other currencies.
Both Brent and WTI tumbled more than 8% last week, their biggest weekly declines at the start of a year since 2016.
"Crude oil prices recovered from the previous week's losses as the economic reopening in China and less aggressive monetary tightening prospects from the Federal Reserve set a positive tone for demand recovery," said Avtar Sandu, senior manager for commodities at Phillip Futures.
As part of the "new phase" in the fight against Covid-19, China opened its borders over the weekend for the first time in three years. 
Domestically, some 2 billion trips are expected during the Lunar New Year season, nearly double last year's movement and recovering to 70% of 2019 levels, Beijing says.

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