Since trading began on January 9, global oil markets have continued to climb as China gradually scales back its strict anti-COVID restrictions. Market watchers on Investing.com are closely following the latest Trade data for clues about demand patterns in the coming weeks.
By 7:51 Moscow time, the March Brent crude contract edged higher, gaining 1.27 percent to reach $79.57 per barrel. The February WTI contract rose 1.38 percent, trading at $74.79. Later, around 12:24 Moscow time, prices extended their ascent with Brent advancing to $80.93, a gain of 3.02 percent on the session. These movements reflect a market responding to changing demand expectations as Asian economies reopen and energy consumption trends shift in response to evolving restrictions.
From December 2022 onward, authorities in China have been dialing back the most stringent aspects of pandemic controls, allowing more mobility and activity across key sectors. The easing measures have often been cited by traders as a signal that fuel demand could pick up in the near term, supporting incremental price strength in crude markets. Analysts note that a sustained rise in consumption in developing economies would likely buoy prices further, while supply-side factors, including producer discipline and inventory levels, continue to influence the pace of gains.
On January 6, Bloomberg reported insights from market participants about Chinese procurement patterns. The news agency stated that Beijing typically purchases crude destined for European markets and has already booked roughly 5 million barrels of oil, mainly in the form of crude, from Kazakhstan. In addition, Unipec, the trading arm of a major state oil company, was reported to have secured at least 2 million barrels of Norwegian Johan Sverdrup crude for loading in January 2023. These deals underscore China’s role as a major absorber of global crude and a key determinant of near-term price trajectories.
Earlier figures from the Russian Ministry of Finance, shared via its Telegram channel, indicated that the average Ural oil price in 2022 stood at about $76.09 per barrel. While this benchmark reflects a different region’s pricing dynamics, it provides context for the broader energy landscape and the relative movements among major crude streams. Market participants weigh these historical baselines against current price action to assess potential upside or risk in the months ahead.
Looking ahead, traders are balancing several forces: signs of recovering demand from China, the trajectory of European energy policy and sanctions, and ongoing questions about crude supply from major producers. In the near term, volatility may persist as new shipment data and refinery throughput figures come into play, shaping expectations for where prices will settle. Investors and industry observers continue to monitor inventory trends, refinery margins, and any new fiscal or regulatory developments that could alter the balance between supply and demand.
In this context, market narratives emphasize that a sustained shift in Chinese consumption patterns could act as a catalyst for higher prices, especially if European buyers seek to secure additional crude ahead of seasonal maintenance cycles. Meanwhile, any unexpected disruptions to key supply routes or refinery outages could inject renewed upward pressure. The interplay of these factors will likely govern price movements through the early part of the year, with traders reassessing risks and opportunities as new data arrives.