Shanghai’s announcement to exit the Covid-19 closure from June 1, continued to provide support for crude oil to trade higher.
With the reopening of economic activity, investors expect fuel demand from China to rise again and put pressure on the global oil market which is already burdened by supply shortages.
In the European session, Brent crude futures were up 1% trading strong at around $ 113.80 a barrel, while US WTI was up 0.8% at $ 111.40 a barrel.
In addition, weak US dollar trading also supported the strengthening of the black commodity price, which made crude oil cheaper to holders of other currencies.
However, crude oil gains were slightly limited following renewed concerns from a Covid-19 contagion in Beijing that could trigger the next shutdown after Shanghai.
Beijing reported a new case record with a total of 99 cases recorded on Sunday, up from 61 infections recorded on Saturday.
Meanwhile, US President Joe Biden once again urged OPEC to increase crude oil production in his speech in Japan on Monday.
