Oil rises more than 1% thanks to weak dollar, despite concerns about Covid in China

Oil prices rose more than 1% on Tuesday, paring losses incurred in the previous session, while the dollar slipped to reduce the impact of sweeping restrictions to combat Covid-19 in China, stoking fears of slowing fuel demand in the second-largest crude consumer in the world. the scientist.

Brent crude futures for January delivery rose $1.53, or 1.7 percent, to $94.34 a barrel by 0718 GMT. The December contract expired on Monday at $94.83 a barrel, down 1 percent.

US West Texas Intermediate crude rose $1.38, or 1.6 percent, to $87.91 a barrel, after falling 1.6 percent in the previous session.

Benchmarks Brent and West Texas Intermediate ended October higher, posting their first monthly gain since May, after the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia said they would cut production by 2 million barrels per day.

On Tuesday, the dollar fell from its highest level in a week against a basket of corresponding major currencies as traders weighed the possibilities of a decision involving a less hawkish direction on monetary policy from the Federal Reserve.

A fall in the dollar would lower the price of oil for holders of other currencies and usually indicates an increase in investors’ appetite for risk.

On Monday, OPEC raised its forecast for global oil demand in the medium and long term, and said that $12.1 trillion in investments would be needed to meet this demand despite the shift towards renewable energy resources.

Restrictions imposed to combat Covid-19 in China led to the temporary forced closure of a Disney park in Shanghai on Monday and raised concerns about a drop in fuel demand in the world’s largest importer of crude oil, in light of China’s adherence to the zero-Covid policy.