As the US announced plans to begin refilling the Strategic Petroleum Reserve, and China called to resume consumption after abandoning its zero-Covid policies, Global crude prices began rising again.

European benchmark Brent was up 0.9% for February delivery, reaching $79.75 per barrel. US benchmark West Texas Intermediate for January settlement was also up 0.9%, hitting $74.97 per barrel, following an almost 4% loss last week. The more active February futures were up 1% to $75.18.

Chinese authorities announced their new economic policy agenda for 2023 last week, and it called for the restoration and expanding of consumption being made the government’s top priority, now that the nation has officially decided to relax its stringent zero-Covid policies. It is expected the new plan will supercharge the nation’s economy, and that will serve to fuel global economic growth.

As the world’s top crude importer, analysts expect the new plan will fuel demand for energy, regardless of the surging Covid cases which previously would have made the reopening process difficult.

At the same time, the US Department of Energy has announced it plans to refill the Strategic Petroleum Reserve, beginning with a 3 million barrel purchase of crude oil. So far this year, the Reserve saw a record 180 million barrel outflow as the White House sought to drive down skyrocketing energy costs.

Regardless of the current optimism, oil is still heading toward a monthly loss, as traders grapple with fears of recessions in the US and UK, the possibility of a global recession, as well as hawkish policies being implemented by central banks that are designed to cool the economies of the world and quell consumption.

Meanwhile, so far Russian exports have continued to be resilient in the face of the the price cap on seaborne crude, implemented by the G7 and EU, as they have shown no major signs of disruptions which might drive up crude prices.