By Gina Lee
Investing.com – Oil was up on Tuesday morning in Asia opening higher after falling sharply during the prior session. However, fuel demand concerns as more COVID-19 lockdowns could be possible in China and a near a two-year high remained on investors’ radars.
rose 1.21% to $103.40 by 11:54 PM ET (3:54 AM GMT) and were up 0.97% to $99.50. Both Brent and WTI benchmarks ended the previous session down around 4%, with Brent tumbling as much as $7 a barrel during the session and WTI falling roughly $6 a barrel.
COVID-19 lockdowns in the city of Shanghai entered a fourth week. Meanwhile, , including its largest shopping district, have prompted fears of a lockdown there and drove fuel demand fears. China is the world’s second-largest fuel importer.
“The hit from Chinese lockdowns is over a million barrels a day and the testing of 12 districts over the next five days will determine the next major move for crude prices,” OANDA senior market analyst Edward Moya said in a note.
Meanwhile, the dollar was down on Tuesday but near a two-year high, thus rendering oil more expensive for other currency holders.
“Supply fears are not the primary focus for energy traders, and now you have a surging dollar that is adding extra pressure across all commodities,” OANDA’s Moya said in his note.
Investors now await , due later in the day.