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Brent crude futures rose by 6 cents, or 0.06% to $98.63 a barrel
at 1026 GMT. U.S. West Texas Intermediate crude was at $92.60 a
barrel, down 1 cent, or 0.01%.
Both contracts dropped by over $1/bbl earlier in the session as
Chinese health officials on the weekend reiterated their
commitment to a stringent COVID containment approach, dashing
hopes of a rebound in oil demand from the world's top crude
importer.
Brent and WTI rose last week, climbing 2.9% and 5.4%,
respectively, on speculation of a possible end to COVID-19
lockdowns despite the lack of any announced changes.
But prices pared losses in early European trading following
stronger risk sentiment, news of recovering Chinese crude
imports and as the U.S. dollar weakened against other
currencies, UBS analyst Giovanni Staunovo said.
The U.S. dollar sank on Monday against the euro and sterling was
supported by a risk on sentiment and a rally in European stock
markets.
While China's imports and exports unexpectedly contracted in
October, its crude oil imports rebounded to the highest level
since May.
Oil prices have been underpinned by expectations of tighter
supplies as the European Union's embargo on Russia's seaborne
crude exports will start on Dec. 5 even though refineries
worldwide are ramping up output.
U.S. oil refiners this quarter will run their plants at
breakneck rates, near or above 90% of capacity. China's largest
private refiner Zhejiang Petroleum and Chemical Co (ZPC) is
raising diesel output.
Kuwait Integrated Petroleum Industries Co (KIPIC) said on Sunday
the first phase of the Al-Zour refinery has started commercial
operations, according to a state news agency.
(Reporting by Rowena Edwards, Editing by Louise Heavens)
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