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New York, Nov 7 (Reuters\/GNA) \u2013 Oil prices rose on Monday to an over two-month high on news that China, the world\u2019s top crude importer, could move toward reopening after years of strict COVID-19 restrictions.<\/p>\n
Brent crude futures were up 57 cents to $99.14 a barrel by 11:34 a.m. EST (1434 GMT). It rose to a session high of $99.56 a barrel, highest since Aug. 31.<\/p>\n
U.S. West Texas Intermediate crude rose by 74 cents to $93.35. It earlier rose 74 cents to a session high of $93.74 a barrel, highest since Aug.\u00a030.<\/p>\n
Chinese leaders are considering reopening after nearly three years of tough pandemic restrictions but are proceeding slowly and have set no timeline, the Wall Street Journal reported, citing sources.<\/p>\n
\u201cThe market seems to be thinking that if China opens the economy, that would tighten supply significantly and put further upward pressure on prices,\u201d said Phil Flynn, an analyst at Price Futures Group.<\/p>\n
There have been mixed signals about China\u2019s reopening. Both crude contracts dropped by more than $1 a barrel earlier in the session after Chinese health officials at the weekend\u00a0reiterated their commitment\u00a0to strict COVID containment measures.<\/p>\n
Meanwhile, China\u2019s imports and exports\u00a0contracted unexpectedly\u00a0in October, its crude oil imports\u00a0rebounded\u00a0to the highest level since May.<\/p>\n
Adding price support, the U.S. dollar\u00a0sank\u00a0against the euro on Monday and sterling was supported by risk-on sentiment and a rally in European stock markets. A weakening dollar makes greenback-denominated oil less expensive for other currency holders, helping push prices higher.<\/p>\n
Oil prices have also been underpinned by expectations of tighter supplies when the\u00a0European Union\u2019s embargo\u00a0on Russia\u2019s seaborne crude exports starts on Dec. 5, even though refineries worldwide are ramping up output.<\/p>\n
U.S. oil refiners\u00a0this quarter will run their plants at breakneck rates, near or above 90% of capacity. China\u2019s largest private refiner\u00a0Zhejiang Petroleum and Chemical Co\u00a0(ZPC), meanwhile, is raising diesel output.<\/p>\n
Kuwait Integrated Petroleum Industries Co (KIPIC) said on Sunday the first phase of its Al Zour refinery had started commercial operations, the KUNA state news agency reported.<\/p>\n
GNA<\/p>\n
Credit: Reuters <\/em><\/p>\nRelated News<\/em><\/h3>\n<\/p><\/div>\n