SINGAPORE, Dec 29 Reuters Oil prices dipped on Thursday as surging COVID19 cases in China dimmed hopes of a recovery in fuel demand for the world39;s largest crude oil importer.

Brent futures for February fell 79 cents, or 1.0, to 82.47 a barrel by 0730 GMT, while U.S. crude fell 80 cents, or 1.0, to 78.16 a barrel.

The scale of the latest outbreak and doubts over official data prompted some countries to enact new travel rules on Chinese visitors, even as China began dismantling the world39;s strictest COVID regime of lockdowns and testing.

The lack of clarity over the virus situation in China has prompted some new travel rules from various countries, which could serve as some dampener for previous optimism, said Jun Rong Yeap, market strategist at IG.

Heading into 2023, there are chances for oil prices to rebound but it will still boil down to the pace of China39;s reopening, and whether market participants have priced for the growth risks as a tradeoff to tighter central bank policies, he added.

Oil markets were also buffeted by expectations of another U.S. interest rate increase in the United States, as the Federal Reserve tries to limit price rises in a tight labour market.

U.S. crude oil inventories fell less than expected, by about 1.3 million barrels, in the week ended Dec. 23, according to market sources citing American Petroleum Institute figures.

That compared with estimates for a draw of 1.5 million barrels, according to analysts39; estimates. The U.S….