Oil may close the week by rising for the 2nd consecutive week, forecasts for China are improving

The rise in WTI oil price could be more than 1% for the week, as it has already gained more than $81 per barrel. China has removed tight coronavirus restrictions and consumption of the largest importer of crude oil is on the rise.

Nevertheless, oil growth in other countries is limited. Because of inflation, which is still too high, monetary policy will remain tight. This was stated by Christine Lagarde, chair of the ECB. According to Lael Brainard, vice-chairman of the Fed, the increased rates should remain in the U.S. for a certain period of time.

Banks are giving different forecasts on the movement of oil. Goldman Sachs Group Inc. says that Brent could exceed $100 per barrel. JPMorgan Chase & Co. is more cautious in its forecasts.

Charu Chanana, a market strategist at Saxo Capital Markets Pte., expressed the view that optimism about China has caused the rise in prices. He believes that increased optimism about a more sustainable demand recovery in China came after reports of a peak in the number of COVID cases.