By 0253 GMT, West Texas Intermediate crude in the US had increased by 88 cents, or 1.1 percent, to $80.44 per barrel, while Brent crude had increased by 88 cents, or 1.1 percent. Earlier in the session, the two benchmarks reached their highest level since December 5.
WTI climbed 2.7pc on Friday, while Brent increased by 3.6pc. The largest weekly advances for both benchmarks since October were achieved. Due to the Christmas holiday, both the British and US markets were closed on Monday.
The National Health Commission said on Monday that China will stop requiring entering travellers to undergo quarantine as of June 8. This ends a policy that had been in effect since the pandemic began three years ago. The leading crude oil importer became more optimistic about rising demand as a result.
In response to this news, the dollar weakened on Tuesday. Oil costs less for holders of other currencies when the dollar is lower, and this typically indicates that investors are more willing to take on risk.
On Christmas Day, a deadly blizzard paralysed Buffalo, New York, cutting off power to thousands of homes, locking motorists and emergency personnel in their cars, and adding to the toll from storms that had been chilling much of the country for days.
As of Saturday afternoon, approximately 2,700 US flights had been cancelled by airlines due to weather-related delays at airports around the US. On Friday, bitter cold and strong winds curtailed energy production across the country and caused power outages, raising the cost of electricity and heating.
“Fears over supply disruption from winter storms in the US prompted buying, though trade was thin as many market participants were away on holiday,” stated Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.
“But the US weather is forecast to improve this week, which means the rally may not last too long,” he remarked.