Oil jumped after China announced it was loosening its strict Zero-Covid policy.
Oil prices rose sharply after China announced that it was loosening its Zero-Kovid policy on the expectation that domestic and international flights would increase oil demand.
U.S. crude rose as much as 2.8 percent to trade at $88 a barrel.
According to the National Health Commission, China has reduced the time people enter the country in quarantine and is shelving a system that penalizes airlines for bringing virus cases into the country.
China’s Zero-Kovid strategy relies on quarantines and mass testing to eliminate infections that weigh on the country’s economy. Daily conditions reached their highest level since April, despite China’s top leaders urging officials to restrict them.
The barrel price of Brent crude oil for January delivery is around $95.78, with an increase of 2.3 percent. The slowdown in the global economy and the concerns about the aggressive monetary policies of the central banks caused oil prices to fall sharply.
Prices rose after the inflation data announced yesterday in the USA, which was lower than the forecasts.
