FX.co ★ Oil Prices Extend Climb On China Reopening Optimism

Oil prices rose sharply on Tuesday to extend gains from the previous session amid signs of further easing of China's COVID restrictions.

The shutdown of the Keystone pipeline last weekend also added to supply uncertainty and put upward pressure on prices ahead of inventory data releases.

Benchmark Brent crude futures jumped 1.7 percent to $79.33 a barrel while WTI crude futures were up 1.5 percent at $74.23.

In the latest loosening of some of the world's toughest anti-virus rules, China has withdrawn a state-mandated app used to track people whether they had travelled to COVID-stricken areas.

Beijing's U.S. envoy on Monday said he expects further relaxations in the near future so that international travel to the country will become easier.

Meanwhile, it is not known as yet as to how long it will take TC Energy Corp to restart its Keystone oil pipeline that was shut after more than 14,000 barrels of oil leaked on the line last week.

Expectations are that the pipeline closure will cause U.S. crude inventories to decline.