Oil Prices Rise, Fall Thanks to China
Oil prices fell on Monday, paring gains after rising to more than two-month highs, on mixed signals over China, the world's top crude importer, potentially relaxing its strict COVID-19 restrictions. West Texas crude dropped to $91 per barrel at Monday’s close, after jumping up to over $93 at one point Monday; the highest West Texas price we’ve seen since August 30th.
Prices climbed during the session on news that Chinese leaders are considering reopening the economy from strict COVID-19 restrictions but are proceeding slowly and have set no timeline. However, the Wall Street Journal reported, Chinese health officials continue to stress their commitment to strict COVID containment measures.
Adding some price support, the U.S. dollar dipped against the euro on Monday and sterling was supported by risk-on sentiment and a rally in European stock markets. A weakening dollar makes oil less expensive for other currency holders, helping push prices higher.
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