Singapore – Oil prices declined in early Asian trading on Monday, but hovered near their highest levels since the start of 2023, amid optimism that China’s reopening from COVID-19 restrictions will increase fuel demand in the world’s largest crude importer.
Brent fell 36 cents, or 0.4 percent, to $84.92 a barrel, while US West Texas Intermediate crude fell 21 cents, or 0.3 percent, to $79.65 a barrel, amid weak trading during a public holiday in the US.
Both benchmarks rose more than 8 percent last week, the biggest weekly gain since October, after China’s crude imports rose 4 percent year-on-year in December.
Last week, oil prices booked their largest weekly increase since October 2022, bouncing back from a significant crash at the start of the year.
Expectations of a rebound in Chinese demand are the primary bullish factor for oil markets at the moment, although traders were happy to take profits.
OPEC is due to release its latest Oil Market Report on Tuesday which will then be followed by the IEA’s monthly report on Wednesday.