Prices of oil bounced back yesterday after four sessions of decline, which was precipitated by hopes that easing anti- COVID measures in China would revive demand. Brent crude rose by 69 cents, or 0.9 per cent, to $77.86 a barrel by 1445 GMT, while U.S. West Texas Intermediate (WTI) crude gained $1.42, or two per cent, to $73.43. China had on Wednesday announced that it would implement sweeping changes to its resolute anti-COVID regime since the pandemic began. Also, at least 20 oil tankers faced delays in crossing to the Mediterranean from Russia’s Black Sea ports.
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, unwinding all the gains made after Russia’s invasion of Ukraine exacerbated the worst global energy supply crisis in decades and sent oil close to its all-time high of $147. Western officials were in talks with Turkish counterparts to resolve the tanker queues, a British Treasury official said on Wednesday, after the G7 and European Union rolled out new restrictions on December 5 aimed at Russian oil exports.