Oil prices extended a rally, climbing more than 2% as China began relaxing some outbreak restrictions, easing fears of demand disruption. The update comes as analysts note that market sentiment improved on hopes for steadier fuel consumption and a smoother economic rebound. DEA News reports the broader move higher across benchmarks was driven by expectations that a loosening of curbs could lift Chinese energy imports and support global oil demand.
Brent crude for March delivery rose 2.53% to 80.56 per barrel, while U.S. West Texas Intermediate for February gained 2.87% to 75.89 per barrel, according to market summaries. The gains reflect a shift in expectations rather than a sudden supply constraint, with traders weighing potential policy changes and the pace of global economic activity. The price action underscores how quickly geopolitical and health-related developments can translate into price volatility in Brent and WTI, the two most actively traded benchmarks.
From the start of trading on January 9, global oil markets have generally trended higher. This broader uptrend aligns with ongoing anticipation of rising demand as movement restrictions ease and travel resumes in several regions. While the pace of demand recovery remains uneven across regions, the overall sentiment remains constructive for crude futures as inventories tighten in some areas and refining margins recover in others.
Since December 2022, Chinese authorities have gradually rolled back some of the strict coronavirus restrictions that weighed on domestic activity and energy use. Those steps have been followed by renewed optimism about energy demand, as factories restart and transportation flows normalize. Market observers say the shift could translate into higher crude intake as refinery runs increase and consumers resume discretionary spending, potentially providing a steadier floor for prices in the near term.
On January 6, Bloomberg cited traders describing how China typically buys crude loaded onto ships destined for Europe. The agency reported Beijing had already purchased about 5 million barrels, largely in crude form, from Kazakhstan. In addition, Unipec, the trading arm of Sinopec, purchased at least 2 million barrels of Norwegian Johan Sverdrup crude aimed for January 2023 loading, illustrating China’s continued role as a key importer and its influence on regional oil flows. Such procurement patterns hint at a broader rebalancing of global supply routes as demand signals improve and buyers adjust their sourcing strategies in response to evolving market conditions [Citation: Bloomberg/Traders].