Oil rises with dollar's descent countering demand worries

Oil wiped out an earlier decline as a slump in the dollar offset mounting concerns that global demand is weakening.

The global Brent benchmark rose to trade near US$94 a barrel, after earlier shedding as much as 1.8 per cent in London. Risk sentiment generally firmed across markets on Monday with equity markets climbing in Europe and the dollar weakenening sharply as traders bet inflation is near a peak.

However, there are concerns the outlook for consumption is worsening as global growth slows and China maintains its strategy of controlling COVID-19 by curbing activity. An outbreak at one of China’s top media schools in Beijing should be stamped out “in the shortest period of time,” local government officials said Sunday.