WTI Crude Oil futures rose above $77 per barrel on Tuesday, snapping a two-day decline as easing Covid restrictions in China buoyed the demand outlook, while supply-side uncertainties triggered by fresh sanctions on Russian oil kept the market on edge.
China has been dialing back virus curbs following widespread protests, with major cities scrapping testing requirements that have hindered movement in the world’s top crude importer.
The shift in China’s Covid response was among several factors considered in OPEC+’s decision to maintain its current output policy. On the supply-side, traders are assessing the impact of the latest round of sanctions on Russian crude, including a US-led price cap on Urals and a European Union embargo on seaborne imports of Russian oil.
Meanwhile, the US oil benchmark tumbled nearly 4% on Monday after better-than-expected US services data stoked worries that the Federal Reserve will need to tighten for longer.
