Oil prices rise on improved Chinese demand prospects

Oil prices as well as the previous session are rising as China eased some of its strict COVID-19 protocols. China's easing of those rules raised hopes for a recovery in economic activity and demand in the world's largest oil importer.

Commodity prices rebounded after China's National Health Commission adjusted its measures to prevent the spread of COVID-19, Reuters reported.

In his note, SPI Asset Management’s Stephen Innes said that such a sudden change in policy could help ease negative concerns and fears of a restrictive approach to on-onshore activity. However, it would not eliminate the sharp drop in demand due to lockdowns.

In their note, ING said that while the latest easing of lockdown requirements is certainly a step in the right direction, the market will need further easing to keep oil prices up.