Oil rises on hopes of demand growth in China

Oil drilling rigs

Oil prices rose today, Feb. 20, after ending last week in loss, amid hopes that China’s reopening of economy will boost demand.

International benchmark Brent crude was trading up 0.80% at $83.68 a barrel, at 8:57 am Makkah time.

West Texas Intermediate (WTI) crude rose 0.70% to reach $76.87 a barrel.

The dollar index, which measures its value against a basket of major currencies, settled at 103.87 points. The dollar affected commodity prices denominated in the US currency last week due to its continued strength.

The International Energy Agency said last week that Chinese demand will grow by 900,000 barrels per day this year, to reach 15.9 million barrels per day.

Oil recorded losses last week, after declining in four consecutive sessions, under pressure from the rise in the dollar supported by the prospects for tightening interest rates in the US, in addition to the sudden growth in US inventories.