Cheaper dollar also helps upward movement of oil prices
Oil prices rose on Monday over demand euphoria as Chinese decision to lift COVID-19 restrictions boosted hopes for rebounding economic activity in the world’s second largest oil consumer.
International benchmark Brent crude traded at $79.65 per barrel at 09.53 a.m. local time (0653 GMT), a 1.37% increase from the closing price of $78.57 a barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at $74.84 per barrel at the same time, a 1.45% gain after the previous session closed at $73.77 a barrel.
The upward movements of prices were driven by rising demand hopes as China removed most virus-related restrictions despite a surge in cases across the country.
Experts voice their concern that the move could stifle economic activity in the country, however, China looked to support its property sector, which translates into oil market as higher demand.
Dollar-indexed oil prices were also positively impacted as hopes on smaller interest rate hikes by the US Federal Reserve weighed on the dollar.
The US dollar index, which measures the value of the American dollar against a basket of currencies, including the Japanese yen,British pound, Canadian dollar, Swedish krona, and Swiss franc, fell 0.28% to 103.36.