Oil rose in a session marked by waning liquidity ahead of the holiday season, strengthened by a softer dollar and a potential boost in energy demand after China abandoned its Covid Zero policy.
West Texas Intermediate steadied around $76 a barrel, helped by a weaker dollar, which makes commodities priced in the currency more attractive. China’s efforts to revive its economy by removing harsh virus curbs is spurring hopes of higher consumption in the long term.
Continued supply disruptions in the US are also supporting oil. Output in North Dakota has fallen by about 300,000 barrels a day since a winter storm last week and the recovery will take some time. Meanwhile, TC Energy Corp.’s restart plan for the Keystone pipeline, which was halted earlier this month, is under review, the Pipeline and Hazardous Materials Safety Administration said on Monday.
Crude is still on track for a second monthly loss with a persistent lack of liquidity leaving prices prone to large swings. The US Federal Reserve is continuing with aggressive interest-rate hikes, while a top European Central Bank official said it would take time for inflation to be brought down.
