Oil trades again gathered strength to bounce back after experiencing a drastic fall in the previous session that weakened concerns over the closure of Covid-19 in China and the strengthening US dollar.
In the Asian session, Brent oil traded up about 1% to trade at $ 103 a barrel while US WTI futures were positive at $ 99.40 a barrel.
Both benchmarks were down around 4% on Monday, with Brent trading down $ 7 a barrel and US WTI down about $ 6 a barrel.
In China, sanctions against Covid-19 in Shanghai have lasted until the fourth week. Meanwhile, the latest threat in Beijing with coronavirus testing being implemented on a large scale has raised concerns a wider closure will occur.
According to analysts, more than a million barrels a day were affected as a result of the closure and Covid-19 testing on 12 counties this week will influence the next movement of crude oil prices.
In addition, the US dollar's jump to a two -year high also weakened oil trade making it more expensive for holders of other currencies.
However, the depreciation of the USD at the beginning of the Asian session gave little room for oil prices to record gains.
