Muscat – Oil prices hit their highest level in more than two months on Monday, supported by China’s easing of COVID-19 restrictions and its move to stimulate a slowing economy. Traders are also waiting to see whether the European Union reaches an agreement on banning Russian oil imports.

Brent crude futures rose half a per cent to US$116.12 a barrel. US West Texas crude futures also rose half a per cent to US$115.64.

However, Oman crude price (for July delivery) dropped by US$1.43 to US$110.84 on Monday. On Friday, it rose to US$112.27.

The average price of Oman oil (for May delivery) was US$110.96, US$19 higher than April delivery.

Both Beijing and Shanghai eased pandemic restrictions, and authorities in Shanghai launched a total of 50 stimulus measures to support the local economy, which has been hit hard by restrictions.

The EU started a meeting on Monday, which will continue till Tuesday, to discuss a sixth package of sanctions against Russia for its invasion of Ukraine.

“If we look at the recent price movement, it seems the market has factored in that the European Union may reach a deal on some form of restrictions on Russian crude,” said Madhavi Mehta, commodity research analyst at Kotak Securities.

“We may see further upside only if it is a complete ban. Any watered-down deal or one which includes exemptions may not have much positive impact,” she added.