(Bloomberg) -- Oil gained -- after sliding 4% on Monday -- as investors assessed the outlook for Chinese demand following the easing of some virus restrictions in Shanghai.
West Texas Intermediate futures rose around 1% to trade above $95 a barrel. Shanghai has eased lockdowns for some housing complexes, though authorities indicated they would reimpose restrictions if cases climb. The southern city of Guangzhou is also taking measures to prevent a flare-up. Oil has now almost given up all its gains since Russia’s invasion of Ukraine.
The oil market has seen a tumultuous period of trading since late February, whipsawed by Russia’s invasion of its neighbor, rising tensions in the Middle East, the virus flare-up in China and tightening monetary policy. The war in Ukraine has entered its second month despite efforts to agree a cease-fire.
The invasion has fanned inflation and prompted the U.S. and its allies to release strategic reserves to tame rising energy prices. OPEC’s top diplomat, meanwhile, told European Union officials that the current crisis in global oil markets caused by Russia’s war is beyond the group’s control.
Brent remains in a bullish backwardation structure -- where near-dated contracts are more expensive than later-dated ones -- but it’s eased over the past week. The prompt timespread for the global benchmark was 21 cents a barrel in backwardation on Monday, compared with $1.53 a week ago.
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