- Reopening of Chinese economy buoys demand expectations
- Rising interest rates and recession fears weigh
- U.S. to begin purchases for strategic reserve
LONDON, Dec 19 (Reuters) – Oil rose more than $1 a barrel on Monday, rebounding after a decline in the previous session, as optimism over the Chinese economy and a recovery in fuel demand outweighed concern over a global recession.
China, the world’s top crude oil importer, is experiencing its first of three expected waves of COVID-19 cases after Beijing relaxed mobility restrictions but said it plans to step up support for the economy in 2023.
“There is no doubt that demand is being adversely influenced,” said Naeem Aslam, analyst at brokerage Avatrade.
“However, not everything is so negative as China has vowed to fight all pessimism about its economy, and it will do what it takes to boost economic growth.”
Brent crude gained $1.12, or 1.4%, to $80.16 a barrel by 1440 GMT while U.S. West…