SINGAPORE, Dec 27 Reuters Oil prices rose to threeweek highs on Tuesday as China39;s latest easing of COVID19 restrictions spurred fuel demand hopes, while concerns that winter storms across the United States are affecting energy production continued to support prices.
Brent crude was up 52 cents, or 0.6, at 84.44 a barrel by 0712 GMT, while U.S. West Texas Intermediate crude was at 80.04 a barrel, up 48 cents, or 0.6. They hit their highest since Dec. 5 earlier in the session.
On Friday, Brent rose 3.6, while WTI gained 2.7, as they recorded their biggest weekly gains since October.
British and U.S. markets were closed on Monday for the Christmas holiday.
China will end its quarantine requirements for inbound travellers starting on Jan. 8, the National Health Commission said on Monday, dropping a rule in place since the start of the pandemic three years ago. That raised optimism of higher demand from the top crude oil importer.
Oil demand recovery is in sight for China, which is great news for the refining sector, said Serena Huang, head of APAC analysis at Vortexa.
The greenback softened after China said it would drop its quarantine rule. A weaker dollar makes oil cheaper for holders of other currencies.
Oil prices are also drawing support from worries about supply disruption due to winter storms in the United States, said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd. The concerns prompted buying, though trade was thin as many market participants…