WTI crude oil futures rose above $80 per barrel in holiday-thinned trade on Tuesday, as China reversed Covid restrictions further while winter storms across the US disrupted oil flows.
China announced on Monday that it will end quarantine requirements for inbound travelers starting on Jan. 8, lifting the demand outlook in the world’s top crude importer.
On the supply side, more than a third of Texas Gulf refining capacity was shut over the past few days due to winter storms, as reported by Bloomberg.
The prospect of a production cut by Russia also supported oil prices, as the country may reduce output by 5% to 7% in early 2023 in response to price caps imposed by Western nations, the RIA news agency reported citing Deputy Prime Minister Alexander Novak.
Meanwhile, investors remain cautious about growing risks of a global recession next year, as major central banks are set to tighten policy further.
