Oil prices inch higher on China demand optimism

Oil prices edged higher on Wednesday on hopes of a recovery in fuel demand as China continues to ease its Covid-19 restrictions, though gains were capped by recession concerns and restarts at some United States energy plants shut by winter storms. Brent futures for February delivery rose nine cents, or 0.1 per cent, to $84.42 a barrel, by 0406 GMT. US crude advanced 10 cents, or 0.1pc, to $79.63 per barrel. Amid the optimistic market mood, both benchmarks hit their highest level in three weeks on Tuesday. The hopes for a boost to demand for fuel in top crude oil importer China come as the world’s second-biggest economy moves towards reopening its borders next month after three years of stringent curbs on movement and businesses to counter the spread of Covid. Chinese hospitals were under intense pressure due to a surge in Covid-19 infections as the country moves towards treating the virus as endemic.