LONDON, Nov 7 (Portal) – Oil prices were steady near $100 a barrel on Monday, as support from a weaker dollar and the rebound in Chinese crude imports met renewed demand concerns related to China’s tough COVID containment approach.
Brent crude futures were down 1 cent, or 0.1%, at $98.56 a barrel by 1444 GMT. US West Texas Intermediate crude was up 4 cents, or 0.04%, to $92.65.
Both contracts fell by more than $1 a barrel at the start of the session after Chinese health officials reiterated their commitment to strict COVID containment measures over the weekend and dashed hopes of a recovery in oil demand from the world’s top crude importer.
Brent and WTI were up 2.9% and 5.4% respectively last week on speculation of a possible end to COVID-19 lockdowns, despite no announced changes.
However, prices trimmed gains on stronger risk appetite, news of a rebound in Chinese crude oil imports and the US dollar’s weakening against other currencies, said UBS analyst Giovanni Staunovo.
Both contracts remain well above $90 a barrel with Brent hovering closer to $100.
The US dollar fell against the euro on Monday and sterling was supported by risk-on sentiment and a rally in European equity markets.
While China’s imports and exports fell unexpectedly in October, its crude oil imports rebounded to their highest levels since May.
Oil prices have also been underpinned by expectations of tighter supplies when the European Union’s embargo on Russian offshore crude oil exports begins on December 5, even as refiners around the world ramp up production.
US oil refiners will be operating at breakneck speed this quarter, near or above 90% of capacity. Meanwhile, China’s largest private refinery, Zhejiang Petroleum and Chemical Co (ZPC), is increasing diesel production.
Kuwait Integrated Petroleum Industries Co (KIPIC) announced on Sunday that the first phase of its Al Zour refinery has started commercial operations, state news agency KUNA reported.
Reporting by Rowena Edwards Additional reporting by Florence Tan and Mohi Narayan Editing by David Goodman and Mark Potter
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