|
Brent crude futures rose $2.86, or 3.1%, to $96.53 a barrel by
1145 GMT, extending a 1.1% rise in the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained $2.87,
or 3.3%, to $89.34 a barrel, after climbing 0.8% in the previous
session.
The easing curbs include shortening quarantine times for close
contacts of cases and inbound travellers by two days, as well as
eliminating a penalty on airlines for bringing in infected
passengers.
"The first small steps towards easing of the regulations that
were announced by the Chinese government this morning allowed
oil prices to climb again, even though this by no means
constitutes a departure from the country's strict zero-Covid
policy, in our opinion," Commerzbank said.
Prices also picked up on Friday after milder-than-expected U.S.
inflation data reinforced hopes that the Federal Reserve would
slow down rate increases, boosting chances of a soft landing for
the world's biggest economy. [MKTS/GLOB]
A weaker U.S. dollar also supported oil prices as it makes the
commodity cheaper for buyers holding other currencies.
Still, the benchmark oil contracts were headed for weekly
declines due to rising U.S. oil inventories, and lingering fears
over capped fuel demand in China amid an uptick in daily COVID
cases.
China's COVID-19 case load soared to its highest since the
lockdown in Shanghai earlier this year. Both Beijing and
Zhengzhou reported record daily cases.
Besides work-from-home orders reducing mobility and fuel demand,
travel across China remained subdued as people wanted to avoid
the risk of being caught up in quarantine, ANZ Research analysts
said in a note.
(Additional reporting by Sonali Paul in Melbourne and Jeslyn
Lerh in Singapore; editing by David Evans)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
