Oil prices rise on hope of demand from China
1 min read 08 Jun 2022, 12:41 AM ISTCrude oil prices rose on Tuesday on demand hopes as China relaxed covid-related curbs. Persistent supply fears also supported the prices as traders remained concerned that the increase in output by Opec+ would not be adequate to ease tight supplies, analysts said.
PremiumNEW DELHI : Crude oil prices rose on Tuesday on demand hopes as China relaxed covid-related curbs. Persistent supply fears also supported the prices as traders remained concerned that the increase in output by Opec+ would not be adequate to ease tight supplies, analysts said.
Further, Saudi Arabia’s decision to hike oil prices also supported crude futures.
“Crude remains supported by China’s lifting of virus related restrictions, Saudi’s move to raise price for Asian buyers and EU’s ban on Russian crude. Crude is however struggling amid increased volatility in equity markets amid monetary tightening concerns," said Ravindra Rao, head of commodity research at Kotak Securities.
He said market players are also trying to assess if Russian supply loss can be compensated by higher exports from countries like Venezuela and Iran who are under economic sanctions.
Crude may remain volatile; however, tightness concerns may keep prices supported, analysts said.
Around 1.30 pm, the July contract of Brent on the Intercontinental Exchange was at $119.90 per barrel, higher by 0.33% from its previous close.
