Oil rises on China demand optimism, Russian supply concerns amid sanctions

Oil prices rose in early trade on Thursday, building on gains in the previous session as China’s demand outlook improves and concerns rise over the impact of sanctions on Russian supply. Brent crude rose 50 cents, or 0.6 per cent, to $83.17 per barrel by 0135 GMT, while US West Texas Intermediate crude also rose 50 cents, or 0.7pc, to $77.91 per barrel. Both benchmarks rose 3pc in Wednesday’s session, settling at the highest levels since December 30. Top oil importer China is reopening its economy after the end of strict Covid-19 curbs, boosting optimism that demand for fuel will grow in 2023. China’s industrial output is expected to have grown by 3.6pc in 2022 from the previous year, the Ministry of Industry and Information Technology said, despite production and logistics disruptions from Covid-19 curbs. The market is bracing for additional curbs aimed at Russian fuel products sales set to come into force in February as the European Union keeps working on more sanctions against Moscow over the invasion of Ukraine.