Oil rose for a second day on signs of further easing of China’s Covid-19 restrictions and as a key North American pipeline remained shut.
(Bloomberg) — Oil rose for a second day on signs of further easing of China’s Covid-19 restrictions and as a key North American pipeline remained shut.
West Texas Intermediate climbed near $74 a barrel after closing 3% higher on Monday, the first gain in seven sessions. China’s ambassador to the US said the nation will continue relaxing its pandemic curbs and will welcome more international travelers soon, lifting demand prospects in the world’s top oil importer.
China’s rapid dismantling of its Covid Zero policy has led to a sharp recovery in the world’s biggest domestic air-travel market, although a surge in cases has raised some concerns about energy consumption. It is also delaying a closely-watched economic policy meeting after Covid infections jumped.
“Everything is happening faster than previously expected, when opening would only start in March,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “Suddenly it starts now.”
Crude is still on track for its first back-to-back quarterly decline since mid-2019 on concerns about the global economic outlook, with thin liquidity in the oil market exacerbating price swings. Investors will be watching a reading on US consumer prices later Tuesday for clues on the path of monetary policy.
TC Energy Corp. has yet to submit a restart plan needed to resume operation of the Keystone pipeline following an oil spill. The conduit has now leaked more crude than any other pipeline on US land in the past 12 years.
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