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Oil prices rose about 1 percent on Monday, extending gains from the previous session, as China eased some of its strict protocols to combat the Coronavirus, raising hopes of a recovery in economic activity and demand in the world’s largest importer of crude.
Brent crude and US West Texas Intermediate contracts rose by about one percent earlier in the session, but later gave up some of the gains.
Brent crude futures rose in the last trading 31 cents, or 0.3 percent, to $ 96.30 a barrel by 0430 GMT, after rising 1.1 percent at the close on Friday.
US West Texas Intermediate crude futures also rose 23 cents, or 0.3 percent, to $ 89.19 a barrel, after closing Friday’s session up 2.9 percent.
Commodity prices rose on Friday after China’s National Health Commission revised its coronavirus prevention and control measures. But COVID-19 infections rose in China over the weekend.
“The latest easing in quarantine requirements is certainly a step in the right direction, but the market will likely need further easing if this latest enthusiasm is to continue,” ING said in a note.
China’s demand for oil from Saudi Arabia, the world’s largest exporter, remains weak after many refineries requested to raise smaller quantities of crude in December.
But the rise of the dollar limited the rise in the price of oil.
