Due to the east Asian Lunar New Year holiday, which thinned out early trade on Monday, oil prices drifted lower. However, they managed to hold onto the majority of last week’s gains due to the possibility of an economic recovery in China, the world’s largest oil consumer, this year.
As of 00:31 GMT, Brent crude futures were down 46 cents, or 0.5%, at $87.17 per barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 40 cents, or 0.5%, at $81.24 per barrel.
The U.S. benchmark only saw a 1.8% gain last week, compared to a 2.8% increase in Brent.
Data indicates a significant increase in travel in China following the relaxation of COVID-19 curbs, according to a note from ANZ commodity analysts. They cited a 22% increase in road traffic congestion so far this month compared to the same period last year in the 15 major Chinese cities.
Fatih Birol, the head of the International Energy Agency, warned on Friday that if the Chinese economy recovers as predicted by financial institutions, energy markets may become tighter this year.
Post Your Comments