US crude oil futures West Texas Intermediate (WTI) rose $4.11, or 4.7%, to $92.35, their highest since Aug. 30, and were headed for a weekly gain of more than 4%
Both contracts were favored by dollar weaknessthat can boost oil demand because it makes the raw material cheaper for those who have other currencies.
Although concerns about demand weighed on the market, supply is expected to remain tight due to liens planned by Europe on Russian oil Yet the decline in crude oil reserves in the United States.
“Slight dollar weakness and the upcoming ban on Russian oil sales are certainly supportive as attention is shifting from recession fears to supply issues,” said PVM Oil Associates analyst, Tamas Vargas, to Reuters.
“The main catalysthowever, are the reports that China could ease its zero COVID restrictionswhich would be a boost for its economy and for the demand for oil”.
The EU ban on imports of Russian crude will take effect from December 5. Details of the G7 price cap intended to ease restrictions on Russian flows outside the EU are still being debated.
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