Oil price jumps almost 3%

The oil price has jumped almost 3% this morning, as China’s reopening is expected to increase demand for energy.

Brent crude has gained over $2 to $80.81 per barrel, recovering some of last week’s losses.

After the Ukraine invasion, Brent hit $130/barrel in March, but has been generally falling since last summer.

Ole Hansen, head of commodity strategy at Saxo, says oil remains volatile amid “China’s chaotic reopening”.

“The first week of 2023 was tough for crude oil, driven by global growth concerns, a very mild winter across the Northern Hemisphere dampening demand, and a mixed outlook for China.

“Despite removing most virus-related restrictions, a surge in cases across the country has hit the short-term demand outlook while at the same time setting the economy on a path to recovery.

“Meanwhile, the IMF warned that a third of the global economy could be in recession in 2023.”