• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Reality catching up with EV forecasts
  • 8 hours A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 19 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 11 days US Oil Independence is a myth and will always be a myth
  • 6 days The Federal Reserve and Money...Aspects which are not widely known
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 15 days Natural gas price to spike when USA is out of the market
  • 14 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 14 days *****5 STARS - "The Markets are Rigged" by The Corbett Report

Breaking News:

Freeport LNG Gets Regulatory Approval

5 Clean Energy Stocks To Watch Ahead Of Earnings Season

5 Clean Energy Stocks To Watch Ahead Of Earnings Season

Energy has been outperforming the…

U.S. Gasoline Prices Continue To Climb

U.S. Gasoline Prices Continue To Climb

Gasoline prices continue to climb…

Oil Prices Climb As China Continues To Ease Covid Restrictions

Crude oil prices climbed on Monday morning as Chinese cities continue to relax Covid restrictions now in their third year under the government’s zero-Covid policy.

However, reports of two Covid-related deaths in two different cities have emerged over the weekend and they may give authorities cause for being cautious about this relaxation.

The easing of restrictions came after protests broke out across several cities in the country, with some of them escalating to clashes with the police, after three years of lockdowns, travel restrictions, and rigorous testing.

ADVERTISEMENT

Shanghai, Bloomberg reported this weekend, has scrapped PCR testing for entry into parks or the public transport from today, and Hangzhou will not longer require PCR tests for entry into most public places.

The relaxation drive has pushed oil prices higher as it is normally indicative of a pending rebound in oil demand as economic activity also rebounds. With new Covid cases in a decline after hitting a peak of 40,000, most of which were asymptomatic, at the end of last month, a relaxation was more or less inevitable.

ADVERTISEMENT

It is very likely that the depression in economic activity was as much a motivator for the adjustment of the restrictions as the protests. One of the world’s power houses, China has already seen the effects of lockdowns on its growth and growth outlook and these effects have not been positive.

If the adjustments continue towards a greater reopening of the country, oil prices could climb higher still, especially with OPEC+’s decision to leave production caps in place and the G7 oil price cap on Russia entering into effect today together with the EU embargo on the commodity.

While it is early to talk about the end of Beijing’s zero-Covid policy, according to Goldman Sachs analysts, the current adjustments to this policy are “clear evidence of the Chinese government preparing for an exit, and trying to minimize the economic and social cost of Covid control in the meantime.”

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News