China’s corona policy: oil prices increase moderately

China’s loosening of the corona policy has an immediate impact on the oil price. This continues to increase.

Oil prices were modestly higher in early trade on Tuesday. In the morning, a barrel (159 liters) of North Sea Brent cost US$ 120.15. That was 64 cents more than the day before. The price of a barrel of West Texas Intermediate (WTI) was up 65 cents to $119.15.

Market participants explained the price premiums primarily with easing of China’s corona policy. In the large metropolises of Beijing and Shanghai, the very strict countermeasures are being relaxed step by step due to declining infections.

This not only ensures relaxation in world trade, which is heavily dependent on China’s exports. The People’s Republic’s energy consumption is also likely to increase, which will benefit oil prices.