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Oil Rises as China Sparks Optimism With Generous Demand Outlook

  • China issues fresh batch of crude import quotas to refiners
  • WTI surged over 4% before paring gains and settling above $74
The silhouette of oil pump jacks
Photographer: Bloomberg Creative Photos/Bloomberg
Updated on

China’s generous quota for crude imports boosted oil with renewed hopes for a demand revival in the world’s largest buyer. 

West Texas Intermediate rose 1.2% to settle above $74 a barrel on Monday. China issued a fresh batch of crude oil import quotas, a signal it’s gearing up to meet higher demand. A weaker dollar also boosted the appeal of commodities priced in the currency. Prices rallied as much as 4% intraday but with the forward curve still flashing weakness ahead, many traders said prices near $77 were a trigger to sell.