Oil shows growth at the beginning of a new trading week

World oil prices on Monday afternoon show moderate growth in the hope of restoring fuel demand in China. Last week, Brent and WTI crude oil rose by more than 3% on the news of the suspension of the Keystone pipeline due to an oil leak.

The current price of Brent oil is $80.17 per barrel. North American WTI crude is trading at $75.50 per barrel. 

Markets are optimistic about the prospects around demand on the background of news from China. In particular, we are talking about the statement of China's top government officials, including President Xi Jinping, on the goals of economic policy and the high priority of restoring and expanding consumption in 2023. And since China is one of the largest importers and consumers of oil, expectations for the economy of this country are reflected in the prospects for demand for this type of raw material.

Additional support for oil quotes is provided by the weakening of the US dollar. The dollar index (the exchange rate against a basket of currencies of six US trading partner countries) decreased by 0.3% to 104.276 points. The depreciation of the dollar traditionally supports the demand for commodities, including oil, making them more affordable to buy in another currency.

Moreover, the US decision to start replenishing the strategic oil reserve was also a growth factor. Earlier, the country's authorities sold 180 million barrels from reserves in order to reduce gasoline prices.