Oil prices opened slightly higher on Tuesday, after a sharp drop in the previous session on concerns over the ongoing closure of COVID-19 in China will cost more and as the U.S. dollar climbed higher in two years.
Brent crude futures were $ 102.57, up 25 cents, or 0.2% and U.S. contracts. West Texas Intermediate rose to $ 98.70, up 16 cents, or 0.2% at 0002 GMT.
Both contracts fell by about 4% on Monday, with Brent lowering about $ 7 a barrel at a time and WTI dipping about $ 6 a barrel. In China the closure of COVID combat centers in Shanghai has dragged on for the fourth week. At that time mass test orders, including the largest shopping district in Beijing, sparked fears of another Shanghai-style closure.
“The effects of the closure of China’s territories are more than a million barrels per day and an inspection of 12 regions over the next five days will determine the next green price,” wrote Edward Moya, OANDA’s largest market analyst.
The US dollar also rose by two years on Monday, making oil more expensive for some investors. “Fear of supply chain is not the main focus of energy traders, and you now have a growing dollar that adds pressure to all commodities,” said OANDA Spirit.
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