LONDON—Oil rebounded on Thursday after four sessions of decline, boosted by hopes that easing anti-COVID measures in China will revive demand and by signs that some tankers carrying Russian oil have been delayed after a G7 price cap came into effect.
China on Wednesday announced the most sweeping changes to its resolute anti-COVID regime since the pandemic began, while at least 20 oil tankers faced delays in crossing to the Mediterranean from Russia’s Black Sea ports.
Brent crude rose 27 cents, or 0.4 percent, to $77.44 a barrel by 1120 GMT, while U.S. West Texas Intermediate (WTI) crude gained 49 cents, or 0.7 percent, to $72.50.
“Today, we do see some green price action,” said Naeem Aslam, analyst at Avatrade. “Prices are oversold due to the intense sell-off for the past few days. However, the price action still doesn’t show a strong bullish bias.”
The 14-day relative strength index for Brent was below 30 on Thursday according to Eikon data, a level taken by technical analysts as indicating an asset is oversold and could be poised for a rebound.
Both Brent and U.S. crude hit 2022 lows on Wednesday.
Concerns of economic slowdown, weakening fuel demand, and the prospect of more interest rate hikes in the United States weighed. The Federal Reserve is widely expected to raise interest rates by 50 basis points next week.
While U.S. crude inventories fell last week, gasoline and distillate inventories surged, adding to concern about easing demand.
