Oil prices extend gains on optimism over China’s recovery

Oil prices rose on Wednesday, extending the previous session’s gains, driven by optimism that the lifting of China’s strict Covid-19 curbs will lead to a recovery in fuel demand in the world’s top oil importer. Brent crude futures firmed 63 cents, or 0.73 per cent, to $86.55 a barrel by 0401 GMT, following a 1.7pc rally in the previous session. US West Texas Intermediate (WTI) crude futures rose 68 cents, or 0.85pc, to $80.56, having risen 0.4pc on Tuesday. China’s economic growth slowed sharply to 3pc in 2022, missing the official target of “around 5.5pc” and marking its second-worst performance since 1976. But the data still beat analysts’ forecasts after China started rolling back its zero-Covid policy in early December. Analysts polled by Reuters see 2023 growth rebounding to 4.9pc. The Organisation of the Petroleum Exporting Countries (Opec) said in a monthly report that Chinese oil demand would grow 510,000 barrels per day (bpd) this year after contracting for the first time in years in 2022 due to Covid containment measures.