China Oil Prices Rise Due To Corona Cases

Brent oil futures were up 50 cents, or 0.65%, to $80.30 a barrel by 1035 GMT, following a 76-cent rise in the previous session.

After increasing 90 cents on Monday, US West Texas Intermediate (WTI) oil futures rose $1, or 1.31%, to $76.19.

Oil prices have been boosted by the United States' announcement last week that it would purchase up to 3 million barrels of oil for the Strategic Petroleum Reserve, after this year's record release of 180 million barrels.

A weaker dollar has also kept prices stable, making oil cheaper for people who hold foreign currencies.

According to OANDA analyst Edward Moya, significant indicators of increased demand are necessary for prices to climb higher.

Reducing Restrictions

While China has been relaxing epidemic restrictions, an increase in coronavirus infections has been negative for oil markets due to concerns about the country's economic recovery, according to CMC Markets analyst Tina Teng.

Cities throughout the country have been scrambling to establish hospital beds and fever-screening facilities in response to growing worldwide worry that Beijing's move to dismantle its tough “zero-coronavirus” regulation may result in fatalities and virus mutations.

Last week, crude oil stockpiles in the United States were expected to fall by roughly 200,000 barrels. In contrast, gasoline and distillate stockpiles are expected to climb. Investors are looking forward to the American Petroleum Institute's report on Tuesday and the Energy Information Administration's report on Wednesday.

Stay tuned for more Forex news.

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