Oil prices went up Tuesday as markets try to gauge how China’s continued reopening and the US’ plan to buy back oil for its Strategic Petroleum Reserve (SPR) will impact global demand.
Brent crude edged up 0.25% to $79.99 a barrel at 9:19 am GST Tuesday, while US West Texas Intermediate (WTI) crude rose 0.41% to $75.50 a barrel around the same time. The last time Brent was at the $79 level was in January.
Oil prices have been volatile in recent months but are already below $100 per barrel. Both benchmarks went past $100 a barrel, crossing it for the first time since 2014, the day after Russian President Vladimir Putin authorized the invasion of Ukraine on February 24. Brent even briefly crossed the $130 mark on March 7 amid supply disruptions.
Oil demand in China, the world’s second-largest oil consumer, fell in recent months due to the country’s strict COVID-19-related lockdowns, with imports dropping by 2% in September compared to the same period a year ago. However, demand rebounded in October.
China’s abrupt easing of its strict zero-COVID-19 policy following protests could cause a surge in infections and deaths, experts have warned, saying the country is not prepared for it with its low vaccination rates and poor investment in emergency care.
And now, many of China's funeral homes and crematoriums have drawn global scrutiny after workers told foreign media, including the Financial Times and the Wall Street Journal, that they were overwhelmed with bodies since the country’s sudden reopening.
On Friday, the global health research center Institute for Health Metrics and Evaluation (IHME) forecasted that China’s COVID-19 death toll could rise to more than 322,000 by April.
