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Brent crude futures were up $1.78, or 2.2%, to $82.77 per barrel
at 1042 GMT, while West Texas Intermediate U.S. crude futures
rose $1.74, or 2.4%, to $75.88 per barrel.
"The price of the barrel is finding support as the reopening of
the Chinese economy, following the end of the zero-COVID policy,
is expected to drive a significant increase in demand for crude
this year," said ActivTrades analyst Ricardo Evangelista.
The International Energy Agency (IEA) expects half of this
year's global oil demand growth to come from China, the agency's
chief said on Sunday, adding that jet fuel demand was surging.
Saudi Arabia, the world's top oil exporter, raised prices for
its flagship crude for Asian buyers for the first time in six
months amid expectations of demand recovery, especially from
China.
Operations at Turkey's 1 million barrel per day (bpd) oil export
terminal in Ceyhan were halted after a major earthquake hit the
region. The BTC terminal, which exports Azeri crude oil to
international markets, will be closed on Feb. 6-8.
The shutdown of the 535,000-bpd Phase 1 part of the Johan
Sverdrup oilfield in Norway's area of the North Sea also boosted
prices.
Oil markets will watch U.S. Federal Reserve chair Jerome
Powell's speech on Wednesday, analysts said. Interest rate hikes
typically strengthen the dollar, which could make crude more
expensive for non-U.S. buyers.
"The rebound in oil prices is more like a cautious move ahead of
Fed Powell's speech tomorrow, when the Fed chairman may provide
more clues on the future rate hike path," said Tina Teng, an
analyst at CMC Markets.
BP on Tuesday reported a record profit of $28 billion for 2022
while boosting its dividend in a sign of confidence as it
sharply raised overall spending plans but scaled back ambitions
to reduce oil and gas output by 2030.
(Additional reporting by Sudarshan Varadhan in Singapore;
Editing by Mark Potter)
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