Stable crude oil price due to reopening of refineries

Oil prices held steady after hitting a three-week high on Tuesday, as the reopening of a dozen U.S. oil refineries knocked out by the frost offset gains on hopes of a recovery. in demand as China relaxes its Covid restrictions.

Brent futures were up 41 cents, or 0.5%, at $84.33 a barrel, while US West Texas Intermediate crude was down 3 cents, or 0.04%, at $79.53 a barrel.

The Mexican export mix rose 0.44% to $69.11 per barrel.

Both contracts reached their highest level since December 5 at the beginning of the session.

China will, from January 8, stop requiring travelers to enter a quarantine, the National Health Commission said on Monday, a major step toward easing borders that have been largely closed since 2020.

“This is certainly something that traders and investors have been waiting for,” Avatrade analyst Naeem Aslam said of China’s plan.

Meanwhile, freezing cold and hurricane-force winds cut power production from North Dakota to Texas due to frost that reduced supplies.

Some refineries on the Gulf of Mexico coast have restarted operations and increased production.

This put pressure on US reformulated gasoline futures, which fell 0.60% to $2.36 a gallon. Although throughout this year they have gained 18.14 percent.

Russian President Vladimir Putin also signed a decree on Tuesday banning for five months the supply of oil and other refined products to countries that impose a price cap from February 1.

Concern over a possible cut in energy production by Russia also supported international prices.