Oil prices rise after China begins reopening economy
Oil reached an all-time high earlier this year due to Russia's invasion of Ukraine
China reopening could present 'great opportunity' in oil stocks: Scott Bauer
Summit Global Investments CIO David Harden and Prosper Trading Academy CEO Scott Bauer provide their outlook for oil stocks as China shows signs of lifting COVID restrictions on 'The Claman Countdown.'
As China's economy begins to reopen amidst fewer COVID-19 restrictions, oil increased by over $1 a barrel on Monday morning despite fears of a global recession.
On Monday, Brent Crude Oil rose by $1.12 or 1.4% a barrel, and U.S. West Texas oil gained $1.42, rising by 1.9% to $75.71 a barrel, according to Reuters. Over the last few months, China has put mobility restrictions in place for large portions of its population after an increase in COVID-19 cases.
The People's Republic of China, the globe's top importer of crude oil, began easing COVID-19 restrictions and plans to support aspects of the economy hit the hardest by pandemic-era regulation.
Earlier this year, oil prices soared to a record high of $147 a barrel due to Russia's invasion of Ukraine in February and trade restrictions. Concerns over a global recession have caused the price to fall in recent months.
DIESEL HITS RECORD PREMIUM OVER GAS, OIL
Oil prices surged on Monday morning as China begins easing their COVID-19 restrictions. (Photo by Mario Tama/Getty Images / Getty Images)
"There is no doubt that demand is being adversely influenced," said Naeem Aslam, an analyst for Avatrade, to Reuters. "However, not everything is so negative as China has vowed to fight all pessimism about its economy, and it will do what it takes to boost economic growth."
BEAR MARKET IS NOT OVER YET, AND WILL CONTINUE IN 2023, GOLDMAN SACHS WARNS
Meanwhile, the European Central Banks, along with the U.S. Federal Reserve, raised interest rates late last week with further promises of further increases down the line in the new year.