On Wednesday, January 18, 2023, oil prices were rising. They are taking advantage of hopes for a recovery economic recovery from China, which would involve a rapid rebound in demand from the largest crude importing country.

The barrel of West Texas Intermediate (WTI) for delivery in February took 1.75% to $81.58, while the barrel of Brent from the North Sea for delivery in March gained 1.40% to $87.13 around 10:15 GMT (11:15 CET). According to ActivTrades analyst Ricardo Evangelista, “the markets are increasingly convinced that China's abandonment of its zero-COVID policy will lead to a strong rebound in economic activity and, as a result, stimulate demand on global oil markets.” This is a favourable scenario for oil prices. For Ricardo, the expected increase in demand from China and the imminent entry into force of new sanctions against Russia “could generate a shortage in the markets and trigger a new escalation in prices.”

Being the largest importer and the second largest consumer of crude oil in the world, China has abandoned the last remnants of its very strict health strategy to fight Covid-19. According to Bjarne Schieldrop, an analyst at Seb, “China was the main reason for the weakness in oil (late 2022) and China is now the main reason for the current price recovery.”