Oil resumes gains, Brent scales eight-week high

Oil prices rose in European trade for the third straight session, with US crude hitting seven-week highs and Brent scaling eight-week highs on expectations for stronger Chinese demand. 

Prices are also bolstered by a weaker dollar, which makes dollar-denominated commodities cheaper to holders of other currencies. 

US crude rose 1% to $82.53 a barrel, the highest since December 5, while Brent added 1.1% to $88.62 a barrel, the best since December 1. 

US crude added 1.1% on Friday while Brent climbed 1.5%, the second profit in a row. 

Global oil prices rose 2.5% on average last week, the second such weekly profit in a row. 

Chinese Demand

Most institutions raises the growth outlook for China in 2023 after reopening the economy and easing Covid 19 restrictions.

Such strong recovery is expected to boost demand on fuel in the world's largest oil importer. 

The International Energy Agency noted that energy markets could tighten this year if the Chinese economy opened up as expected. 

The Dollar

The dollar index fell 0.4% on Monday, extending losses for the third straight session and almost touching eight-month lows against major rivals. 

The decline comes as markets fully price in a smaller 0.25% rate hike by the Federal Reserve in February.