Oil prices rallied on Tuesday, with the US contract climbing above the $ 100 a barrel level again after Monday’s 4% drop.
China’s decision to ease some of the lockdowns to control coronavirus cases and deadlock in Russia-Ukraine negotiations gave a boost to prices today.
May futures contracted $ 6.31, or 6.7%, and climbed to $ 100.60 a barrel on the New York Mercantile Exchange.
Brent crude for June delivery rose $ 6.16, or 6.3 percent, to $ 104.64 a barrel on the ICE Futures exchange.
The tight closure of Shanghai, a city of 25 million people, has led to shortages of food and other basic necessities, prompting authorities to announce on Tuesday that they will ease some restrictions in areas that have not seen cases in the past two weeks.
The decision has helped allay concerns about the impact of lockdowns on the economy and demand as the Chinese leadership insists on a zero-case policy.
However, OPEC lowered its forecast for demand growth in 2022 by 500,000 barrels per day to 3.7 million barrels per day due to its revised forecast for economic growth.
In a separate report, the US Energy Agency reduced its forecast for global consumption to 99.8 million barrels per day for 2022, a size reduced by 800,000 barrels compared to the March forecast.
Source: Capital
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