# Oil hits 3-week high as China eases COVID curbs Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-12-27 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil Prices Surge as China Eases COVID Restrictions Meta Description: Oil prices hit a three-week high as China eases COVID-19 restrictions, boosting demand hopes. U.S. energy facilities restarting after winter storms. URL: https://financedigest.com/oil-hits-3-week-high-as-china-eases-covid-curbshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-12-27t014341z1lynxmpeibq00nrtroptp4ukraine-crisis-usa-gasoline-1-1736814674862-compressed.jpg) By Alex Lawler LONDON (Reuters) -Oil hit a three-week high on Tuesday as China’s latest easing of COVID-19 restrictions spurred hopes of a demand recovery, although prices pared gains after some U.S. energy facilities shut by winter storms began to restart. [China will stop requiring inbound travellers to go into quarantine](https://www.financedigest.com/wall-st-stocks-fall-bond-yields-rise-as-china-drops-quarantine-rule.html "Wall St stocks fall, bond yields rise as China drops quarantine rule"), starting from Jan. 8, the National Health Commission said on Monday in a major step towards [easing curbs](https://www.financedigest.com/oil-prices-rise-as-china-eases-covid-curbs-u-s-storm-fuels-supply-worries.html "Oil prices rise as China eases COVID curbs, U.S. storm fuels supply worries") on borders that have been largely shut since 2020. Brent crude was up 19 cents, or 0.2%, at $84.11 a barrel by 1450 GMT and U.S. West Texas Intermediate crude [gained 39 cents](https://www.financedigest.com/survey-only-7-per-cent-of-businesses-gdpr-compliant-as-deadline-looms-data-privacy-gains-prominence.html "Survey: Only 7 per cent of businesses GDPR-compliant as deadline looms, data privacy gains prominence"), or 0.5%, to $79.95. Both benchmarks [hit their highest since](https://www.financedigest.com/uk-mortgage-approvals-hit-lowest-since-june-2020.html "UK mortgage approvals hit lowest since June 2020") Dec. 5 earlier in the session. This is certainly something that traders and investors have been hoping for,” Avatrade analyst Naeem Aslam said of [China’s plan](https://www.financedigest.com/dutch-responds-to-us-china-policy-with-a-plan-to-curb-semiconductor-tech-exports.html "Dutch responds to US China policy with a plan to curb semiconductor tech exports") over the quarantine rule. UK and U.S. [markets had been closed on Monday for Christmas](https://www.financedigest.com/prague-christmas-market-returns-after-covid-but-with-fewer-lights.html "Prague Christmas market returns after COVID but with fewer lights") holidays. Equities gained while the U.S. dollar softened on Tuesday in response to the Chinese move. A weaker dollar makes oil cheaper for holders of other currencies and tends to support [risk assets](https://www.financedigest.com/analysis-watch-out-risk-assets-the-rout-in-bonds-is-coming-your-way.html "Analysis-Watch out risk assets, the rout in bonds is coming your way"). Oil also drew support from worries over [supply disruption because of winter](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says") storms in the United States, said Kazuhiko Saito, chief analyst at Fujitomi Securities. “But the U.S. weather is forecast to improve this week, which means the rally may not last too long,” he said. Some facilites were already being [brought back](https://www.financedigest.com/occupational-health-and-safety-must-be-brought-back-to-the-forefront-of-esg.html "Occupational Health and Safety must be brought back to the forefront of ESG") online. TotalEnergies continued restarting its 238,000 barrel-per-day (bpd) Port Arthur, Texas refinery on Tuesday, said people familiar with plant operations. As of Friday, some 1.5 [million barrels of daily refining](https://www.financedigest.com/uks-superdry-in-talks-with-bantry-bay-to-refinance-85-million-facility.html "UK’s Superdry in talks with Bantry Bay to refinance million facility") capacity along the U.S. Gulf Coast was shut, while [oil and gas output](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") from North Dakota to Texas suffered freeze-ins, cutting supply. Concern over a possible production cut by [Russia also provided price](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") support. Russia might cut oil output by 5% to 7% in early 2023 as it responds to price caps, the RIA news agency cited Deputy Prime [Minister Alexander Novak as saying](https://www.financedigest.com/british-doctors-strikes-risk-patient-safety-minister-says.html "British doctors’ strikes risk patient safety, minister says") on Friday. (Reporting by Alex LawlerAdditional reporting by Yuka Obayashi in Tokyo and Isabel Kua in SingaporeEditing by David Goodman and Louise Heavens) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---