FX.co ★ Oil Futures Climb Higher On Optimism About Energy Demand

Crude oil prices climbed higher on Monday amid optimism about increased demand for oil from China after the country relaxed certain Covid-related restrictions.

Traders also reacted positively to the Chinese government's announcement d plans to step up support for the economy.

China has vowed to fight all pessimism about its economy, and said it will do what it takes to boost economic growth.

However, fears of a global recession amid rising interest rates capped oil's upside.

West Texas Intermediate Crude oil futures for January ended higher by $0.91 or about 1.25% at $75.20 a barrel.

Brent crude futures were up $1.21 or 1.52% at $80.25 a barrel.

The U.S. energy department's announcement last week that it will start repurchasing crude for the Strategic Petroleum Reserve contributed as well to the rise oil prices.