Oil prices rise as China lifts COVID-19 restrictions

Oil prices climbed above $80 per barrel on Tuesday, as China eased COVID-19 restrictions and winter storms in the US impacted oil production.

As of 10:10 am (UAE time), Brent crude, the benchmark global price, went up by 0.66% to $80.22 per barrel, the highest since December 5.

West Texas Intermediate (WTI), which is produced in the US and is the benchmark of the oil market, rose by 0.76% to $84.68 per barrel.

China has announced that starting from January 8, travellers will no longer be required to quarantine. 

The Asian state has been following a zero-COVID policy and shut its borders for about three years since the onset of the health outbreak.

The scrapping of quarantine rules is expected reopen the world’s biggest energy consumer to inbound travel and fuel demand for oil. 

“I would expect to see a significant opening… Now that has profound implications for the global economy, more so than an oil price cap,” Singapore Minister of Foreign Affairs Vivian Balakrishnan told CNBC on December 6.

In the US, some oil refineries were forced to shut down due to winter storms. Last week, several production units at Pemex Deep Park refinery in Texas, halted operations, losing more than 300,00 barrels per day.

SOURCE: CNBC