Oil prices increased after dropping by more than $2 a barrel in the previous session as hopes for the Chinese economy outweighed worries about a possible global recession. After Beijing relaxed mobility restrictions, China, the world’s top importer of crude oil, is already suffering the first of three anticipated waves of COVID-19 instances.
However, Beijing expects to intensify support for the economy in 2023.
Demand is unquestionably being negatively impacted, according to Naeem Aslam, analyst at brokerage Avatrade. U.S. West Texas Intermediate crude increased 30 cents, or 0.4%, to $74.59 while Brent crude increased 37 cents, or 0.5%, to $79.41 a barrel.
Following Russia’s invasion of Ukraine earlier this year, oil rose to a record high of $147 per barrel.
United States Federal Reserve and European Central Bank raised interest rates last week and promised more. The Bank of Japan, meanwhile, could shift its ultra-dovish stance when it meets.