Brent crude futures were down 1 cent, or 0.1%, at $98.56 a barrel by 1444 GMT. U.S. West Texas Intermediate crude was up 4 cents, or 0.04 percent, at $92.65. Both contracts fell by more than $1 a barrel earlier in the session after Chinese health officials over the weekend reiterated their commitment to strict COVID containment measures, dashing hopes for a recovery in oil demand from the world’s top crude importer. Brent and WTI rallied last week, rising 2.9% and 5.4%, respectively, on speculation of a possible end to COVID-19 lockdowns despite a lack of announced changes. But prices pared gains on stronger risk sentiment, news of a rebound in Chinese crude imports and a weaker U.S. dollar against other currencies, UBS analyst Giovanni Staunovo said. Both contracts remain well above $90 a barrel, with Brent nearing $100. The US dollar sank against the euro on Monday and sterling was supported by risk sentiment and a rally in European markets. While China’s imports and exports unexpectedly contracted in October, crude oil imports rebounded to the highest level since May. Oil prices were also supported by expectations of lower supplies when the European Union’s embargo on Russia’s seaborne crude exports begins on Dec. 5, even as refineries around the world ramp up output. US oil refiners this quarter will run their plants at a breakneck pace, near or above 90% capacity. China’s largest private refiner Zhejiang Petroleum and Chemical Co (ZPC), meanwhile, is ramping up diesel production. Kuwait Integrated Petroleum Industries Co (KIPIC) announced on Sunday that the first phase of its Al Zour refinery has started commercial operations, state news agency KUNA reported. Reporting by Rowena Edwards Additional reporting by Florence Tan and Mohi Narayan Editing by David Goodman and Mark Potter; Our Standards: The Thomson Reuters Trust Principles.
