# Oil prices rise as China eases COVID curbs, U.S. storm fuels supply worries 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 to Three-Week Highs on China Demand Boost Meta Description: Oil prices surge as China's lifting of quarantine rule boosts demand hopes and concerns over U.S. winter storms impact energy production. URL: https://financedigest.com/oil-prices-rise-as-china-eases-covid-curbs-u-s-storm-fuels-supply-worrieshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-12-27t014341z1lynxmpeibq00nrtroptp4ukraine-crisis-usa-gasoline-1736814676080-compressed.jpg) By Isabel Kua SINGAPORE (Reuters) -Oil prices rose to three-week highs on Tuesday as China’s latest easing of COVID-19 restrictions spurred fuel demand hopes, while concerns that winter storms across the United States are affecting energy production continued to support prices. Brent crude was up 52 cents, or 0.6%, at $84.44 a barrel by 0712 GMT, while U.S. West Texas Intermediate crude was at $80.04 a barrel, up 48 cents, or 0.6%. They hit their highest [since Dec](https://www.financedigest.com/euro-zone-economy-sentiment-rises-in-dec-first-time-since-start-of-ukraine-war.html "Euro zone economy sentiment rises in Dec, first time since start of Ukraine war"). 5 earlier in the session. On Friday, Brent rose 3.6%, while WTI gained 2.7%, as they [recorded their biggest weekly gains](https://www.financedigest.com/oil-gains-after-iea-sees-demand-rising-to-record-high.html "Oil gains after IEA sees demand rising to record high") since October. British and U.S. [markets were closed on Monday for the 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") holiday. [China will end](https://www.financedigest.com/european-shares-end-higher-on-china-recovery-optimism.html "European shares end higher on China recovery optimism") its quarantine requirements for inbound travellers starting on Jan. 8, the National Health Commission said on Monday, dropping a [rule in place since the start of the pandemic](https://www.financedigest.com/big-pharma-may-have-to-reveal-government-deals-in-whos-draft-pandemic-rules.html "Big Pharma may have to reveal government deals in WHO’s draft pandemic rules") three years ago. That raised optimism of higher demand from the top [crude oil](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") importer. [“Oil demand recovery is in sight for China](https://www.financedigest.com/oil-rises-about-2-with-u-s-and-china-inflation-in-focus.html "Oil rises about 2% with U.S. and China inflation in focus"), which is great news for the refining sector,” said Serena Huang, head of APAC analysis at Vortexa. The greenback softened after [China said it would drop its quarantine rule](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"). A weaker [dollar makes oil](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar") cheaper for holders of other currencies. [Oil prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") are also drawing support from worries about supply disruption due to winter storms in the United States, said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd. The concerns “prompted buying, though [trade was thin as many market](https://www.financedigest.com/xtrd-io-joins-the-fix-trading-community-to-help-bring-institutional-money-into-cryptocurrency-markets.html "XTRD.io Joins the FIX Trading Community to Help Bring Institutional Money Into Cryptocurrency Markets") participants were away on holiday”, Saito added. “But the U.S. weather is forecast to improve this week, which means the rally may not last too long,” he said. A blizzard that paralyzed western New York over the Christmas weekend has killed more than two dozen people, local officials said, as crews [struggled to dig out the snow-bound region around](https://www.financedigest.com/after-fleeing-war-ukrainians-struggle-to-settle-around-europe.html "After fleeing war, Ukrainians struggle to settle around Europe") Buffalo from its fiercest winter storm in decades. The larger storm system has wreaked havoc with travel across the country over the holiday weekend, stranding passengers as [thousands of flights](https://www.financedigest.com/southwest-cancels-thousands-more-flights-u-s-government-vows-scrutiny.html "Southwest cancels thousands more flights; U.S. government vows scrutiny") were cancelled. Frigid cold and [blowing winds on Friday knocked out power and cut energy](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target") production across the United States, driving up heating and electricity prices. Concerns over a possible production [cut by Russia also contributed to oil price](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel") gains. Russia may 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 Yuka Obayashi in Tokyo and Isabel Kua in Singapore; Editing by Lincoln Feast and Himani Sarkar) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---