Oil prices jumped after China announced some easing of its strict “zero COVID-19” measures, a move that could spark more local and international travel, and lift commodity demand.
China reduced the amount of time people entering the country must spend in quarantine and is to scrap a system that penalizes airlines for bringing COVID-19 cases into the nation, the Chinese National Health Commission said.
West Texas Intermediate for December delivery rose 2.88 percent to US$88.96, but lost 3.94 percent on the week.
Photo: AP
Brent crude for December delivery rose 2.48 percent to US$95.99, but lost 3.56 percent from a week earlier.
“These moves were in the offing for some time, but they are going to further fuel speculation over a broader relaxation of China’s COVID control measures, which is bullish for energy and commodities,” Singapore-based Vanda Insights founder Vandana Hari said.
China’s COVID-19 strategy relies on lockdowns and mass testing to stamp out infections, a policy that has weighed on China’s economy this year.
Despite the strategy, daily cases have climbed to the highest since April.
Investors have been watching for clues on any relaxation, with markets increasingly whipsawed by rumors of easing.
Oil has lost almost one-third of its value since June on concerns over a global economic slowdown and aggressive monetary tightening by central banks.
West Texas Intermediate had edged higher earlier in the session along with broader markets after data showed slower-than-projected US inflation.
Additional reporting by staff writer
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