Oil rallies with commodities on optimism over China COVID easing
BNN Bloomberg
Oil jumped to the highest in more than three weeks as commodities and stocks in Asia rallied on optimism over China potentially easing its COVID restrictions.
West Texas Intermediate futures surged almost three per cent beyond US$90 a barrel, with the world's biggest crude importer said to be working on plans to scrap a system that penalizes airlines for bringing virus cases into the country. Speculation has circulated on social media this week that China may change its COVID Zero policy, boosting markets focused on the Asian nation.
China's COVID Zero strategy relies on lockdowns and mass testing to stamp out infections and has weighed heavily on the nation's economy this year. Bank of China International Ltd. analysts including Xiao Fu estimate that the country's oil demand will decline by 400,000 barrels a day in 2022 due to virus curbs.
