Oil prices rise amid supply disruptions and optimism about China

Oil extended its gains on Tuesday, with supply disruptions and easing anti-Corona restrictions in China, the world’s largest crude importer.

Brent crude futures rose 90 cents, or 1.15 percent, to $78.89 a barrel by 1020 GMT, while US West Texas Intermediate crude futures rose 67 cents, or 0.92 percent, to $73.84.

WTI hit a low of $70.25 on Monday, close to the $70 theoretical repurchase price that US President Joe Biden said he aims to replenish crude stocks upon reaching, which supported oil prices on Tuesday.

Craig Erlam, senior market analyst at OANDA, said that further support for prices came from the easing of anti-Corona restrictions in China and Russia’s threat to cut production in the face of the G7 price cap, as well as the closure of a major supply line to the United States.

No timetable has been set for the resumption of supplies through TC Energy’s Keystone pipeline, through which about 620,000 barrels per day of Canadian crude are shipped from Alberta to the United States after it was shut down last week.

According to a preliminary Reuters poll, the pipeline shutdown raised expectations that US crude stocks would drop by 3.9 million barrels in the week ending December 9.