Brent crude rose 41 cents, or 0.5%, to $84.33 a barrel, while US West Texas Intermediate crude fell three cents, to $79.53 a barrel.
-
Both benchmarks hit their highest levels since December 5 at the start of the session
Oil prices stabilized after hitting a three-week high on Tuesday as the restart of some US power plants after shutting down due to winter storms offset gains on demand recovery hopes as China loosen coronavirus restrictions.
Brent crude oil rose 41 cents, or 0.5%, to $84.33 a barrel, while US West Texas Intermediate crude fell three cents to settle at $79.53 a barrel.
And the two benchmarks recorded their highest levels since December 5 at the start of the session.
Refineries along the Gulf Coast have begun resuming operations and ramping up production after operations were suspended due to a polar storm that engulfed the country.
The extreme cold has also reduced oil and gas production from North Dakota to Texas.
Read also: French newspaper: The West fears Russia’s response after the drop in oil prices
“The weather is expected to improve in the US this week, which means the rally may not last long,” said Kazuhiko Saito, a senior analyst at Fujitomi Securities.
And the National Health Committee said on Monday that China will exempt those arriving there from quarantine procedures, starting January 8, in an important step towards easing restrictions on largely closed borders from 2020.
For his part, Naim Islam, an analyst at AvaTrade, pointed out, “This is definitely something that retailers and investors have been looking forward to.” The UK and US markets were closed yesterday due to the holiday season.
And before today, Russian President Vladimir Putin has signed a decree banning the supply of oil and petroleum products For participating countries to impose a cap on Russian crude oil prices, provided that it takes effect on February 1, 2023 and lasts for five months.
