March 23, 2023
Finance Pakistan

Oil Nudges Higher After China Opens Borders, Lifts Fuel Demand Outlook

Oil prices rimmed up on Monday, a day after travellers surged into China pursuing a reopening of boundaries that pinched the power need viewpoint and partially offset problems of international recession.

Brent crude futures had risen 53 cents, or 0.7 per cent, to $79.10 a barrel by 0114 GMT while US West Texas Intermediate crude was at $74.23 a barrel, up 46 cents, or 0.6pc.

Hopes for less-aggressive US interest rate rises are buoying financial markets and depressing the dollar. A weaker greenback makes dollar-denominated commodities more affordable for investors holding other currencies.

Both Brent and WTI tumbled more than 8pc last week, their biggest weekly dives at the start of a year since 2016.

“Crude oil futures had their biggest weekly losses in a month due to recession fears as oil prices have been positively correlated with inflation since 2022, though China’s reopening may buffer the decline in the near term,” CMC Markets analyst Tina Teng said in a note.

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