Oil prices rose in early trading on Monday with US fuel demand, tight supply and a slightly weaker US dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown that fueled concerns about a sharp slowdown in growth.
“Refineries are typically in ramp-up mode to feed the insatiable thirst of American drivers at the pumps.”
“High-frequency data suggests demand continues to grow,” ANZ analysts said in a note.
A weaker US dollar also lifted oil on Monday, as it makes crude cheaper for buyers holding other currencies.
Lockdowns in China, the world’s biggest oil importer, have hammered industrial production and construction, prompting measures to support the economy, including a bigger-than-expected mortgage rate cut last Friday.
(Edited by : Akriti Anand)