Stable trend in oil

Oil prices, which started the week flat, remained steady on the second trading day of the week. Oil traded sideways as investors awaited fresh signals on China’s crude demand following the lifting of COVID restrictions. US crude saw limited movement above $81 a barrel after Monday. Brent crude also traded around $88. Oil had gained in the past two weeks on expectations that a rapid return in China, the world’s largest importer, could send daily consumption to a record high in 2023 as mobility and industrial activity pick up. Investors are also monitoring the impact of tighter restrictions imposed on Russian supplies by the European Union and the US following the invasion of Ukraine. “Signs of positive fundamentals in most commodity markets helped lift sentiment. Optimism on demand from China’s reopening is strong,” Australia & New Zealand Banking Group said in a daily note. The oil market will be monitoring data from the American Petroleum Institute. Over the past two weeks, commercial inventories nationwide have increased by more than 27 million barrels, reaching their highest level since June 2021.