Oil prices edge higher on relaxed China COVID curbs, tight supplies

Oil prices edge higher on relaxed China COVID curbs, tight supplies

Brent crude futures were up 19 cents, or 0.2%, at $119.70 barrel at 0050 GMT.







Reuters









June 07, 2022 / 07:11 AM IST





Oil pumping jacks, also known as "nodding donkeys", in an oilfield near Neftekamsk, in the Republic of Bashkortostan, Russia, on Thursday, Nov. 19, 2020. The flaring coronavirus outbreak will be a key issue for OPEC+ when it meets next. Photographer: Andrey Rudakov/Bloomberg



Oil prices inched higher on Tuesday on expected demand recovery in China as it relaxed tough COVID curbs and doubts a higher output target by OPEC+ producers would ease tight supply.

Brent crude futures were up 19 cents, or 0.2%, at $119.70 barrel at 0050 GMT.

U.S. West Texas Intermediate (WTI) crude futures were up 25 cents, or 0.2%, at $118.75 a barrel. The benchmark hit a three-month high of $120.99 on Monday.

Easing travel restrictions in China are expected to boost demand for oil in the coming weeks, analysts from ANZ Research said in a note.

Beijing and the commercial hub Shanghai have been returning to normal in recent days after two months of painful lockdowns to stem outbreaks of the Omicron variant. Traffic bans were lifted and