Corona situation in China improves – oil prices rise significantly

The corona situation in China has a strong impact on global oil prices. Most recently, the metropolises of Beijing and Shanghai reported fewer infections – the price of oil is rising.

Oil prices rose significantly in early trading on Wednesday. In the morning, a barrel (159 liters) of the North Sea variety Brent cost $ 105.33. That was $2.87 more than the day before. The price of a barrel of the US West Texas Intermediate (WTI) variety increased by $ 2.47 to $ 102.23.

On the market, the price surcharges were explained by the more favorable corona situation in China. The metropolises of Beijing and Shanghai recently reported fewer infections. This brings into view the possibility of lower corona restrictions. For weeks, the Chinese leadership has been taking action against the spreading virus with sharp curfews. The domestic economy and oil consumption will be severely affected as a result.

Although oil prices have struggled to find a clear direction in recent weeks, they are at a high level. Since the beginning of the year, the increase has been about 35 percent. The decisive factors are Russia’s war against Ukraine and sharp sanctions, mainly by Western countries, against Russia, which is one of the world’s largest oil producers.