Crude oil futures ended higher with gains of over six percent on Tuesday as Shanghai’s relaxation of some COVID-19 restrictions eased concerns about Chinese demand. Shanghai said on Monday that more than 7,000 residential units had been classified as lower-risk areas after reporting no new infections for 14 days and districts have since been announcing which compounds can be opened up. Further, support also came in as the Organization of the Petroleum Exporting Countries (OPEC) warned that it would be impossible to replace 7 million barrels per day (bpd) of Russian oil and other liquids exports lost in the event of sanctions or voluntary actions.
Benchmark crude oil futures for May delivery rose $6.31 or 6.7 percent to settle at $100.60 a barrel on the New York Mercantile Exchange. Brent crude for June delivery surged $6.10 or 6.2 percent to settle at $104.58 a barrel on London's Intercontinental Exchange.