---
title: "Oil gains after weekly loss as China recovery competes with Fed"
description: "Oil rose after a weekly loss on hopes that a Chinese demand rebound is picking up pace following the end of Covid Zero, outweighing hawkish signals from the Federal Reserve."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-02-20-oil-gains-after-weekly-loss-as-china-recovery-competes-with-fed/"
published: "2023-02-20T06:07:28"
updated: "2023-02-20T06:07:55"
lang: "en-ZA"
word_count: 180
---

# Oil gains after weekly loss as China recovery competes with Fed

> Oil rose after a weekly loss on hopes that a Chinese demand rebound is picking up pace following the end of Covid Zero, outweighing hawkish signals from the Federal Reserve.

By Bloomberg · Published 20 February 2023, 08:07 SAST · Updated 20 February 2023, 08:07 SAST

## Key points
- West Texas Intermediate crude prices jumped, ending a long streak of losses after signs of Chinese oil demand recovery emerged. With additional tightening from the Federal Reserve to combat inflation and sanctions on Russia's energy sector, investors are navigating a bumpy start to 2023. The US is also planning new export controls and sanctions on key Russian industries and individuals. Despite these factors, there remains optimism that Chinese reopening could spark a bullish sentiment in global markets.
- West Texas Intermediate climbed to $77 a barrel, ending the longest run of declines this year.
- Signs of a recovery in Chinese oil demand are emerging, but further monetary tightening from the Federal Reserve is keeping a lid on prices.
- Economic sentiment and Chinese reopening could spark bullishness in coming weeks.
- US plans to impose new export controls and sanctions on Russia targeting defence, energy sectors and financial institutions.

## Content

West Texas Intermediate climbed toward $77 a barrel, snapping the longest run of declines this year. Signs are emerging of a recovery in Chinese [oil demand](https://www.bloomberg.com/news/articles/2023-02-15/china-s-oil-buying-points-to-robust-outlook-for-global-demand), although the prospect of further [monetary tightening](https://www.bloomberg.com/news/articles/2023-02-16/fed-officials-support-more-rate-hikes-to-ensure-lower-inflation) from the Federal Reserve to combat inflation is keeping a lid on crude prices.

“Economic sentiment and the mood in the financial markets is likely to remain in the driver’s seat,” said Vandana Hari, founder of Vanda Insights. “The Chinese reopening could spark a bout of bullishness at some point in coming weeks.”

Oil has endured a bumpy start to 2023 as investors juggle persistent concerns over a global economic slowdown and optimism around China’s [reopening](https://www.bloomberg.com/news/articles/2023-02-15/china-s-oil-buying-points-to-robust-outlook-for-global-demand). The fallout from sanctions on Russian energy and the rerouting of global flows has added another element of uncertainty to the global market.

The US plans to impose new export controls and fresh sanctions on Russia, targeting key industries a year after the invasion of Ukraine. The [measures](https://www.bloomberg.com/news/articles/2023-02-19/us-plans-new-russia-export-controls-sanctions-on-key-industries) will target the nation’s defence and energy sectors, financial institutions and several individuals, according to people familiar with the matter.**BM/DM**