Oil closes at two-month high with China seen easing COVID Zero
BNN Bloomberg
Oil closed at the highest level since August as markets rallied over China easing its COVID restrictions.
Oil closed at the highest level since August as markets rallied over China easing its COVID restrictions.
Brent crude futures settled above US$98 a barrel for a third straight weekly gain. China is said to be working on plans to scrap a system that penalizes airlines for bringing virus cases into the country, a move that suggests the nation may be easing its so-called COVID Zero policy, paving the way for higher crude demand.
Oil has struggled to find direction in recent sessions, with lackluster trading volumes rendering futures especially susceptible to macro market moves. Adding to volatility is the push and pull between a tightening supply outlook and concerns over a global economic slowdown. The prospect of renewed demand from China, the world’s biggest crude importer, is propelling futures to levels not seen since August, while new Russian sanctions taking force in December are also bullish for crude.
