Oil prices are weakly rising on Monday after the maximum drop in almost 2 years at the end of last week.

In the center of attention of traders remains the situation in China, where the growth of COVID-19 incidence continues, in connection with which the authorities maintain strict restrictive measures. Expectations of weakening demand for energy resources in China became one of the factors behind the decline in oil prices last week.

Another important factor was the announcement by the US, followed by other IEA member countries, of their intention to release oil and strategic reserves in order to limit price growth.

At the end of last week, Brent fell in price by 11.1%, WTI – by 12.8%, the weekly drop in the value of both grades was the most significant since April 2020.

“The decision by the States to release oil from the strategic reserve seems to have reversed the rally in the oil market,” said Vandana Hari, founder of Vanda Insights, quoted by Bloomberg news agency.

Meanwhile, Mike Mueller, head of Asian business at Vitol, the world’s largest oil trader, said over the weekend that he believes oil prices have fallen to levels that do not take into account the risks of a possible reduction in exports from Russia.

The cost of June Brent crude futures on London’s ICE Futures exchange by 8:21 Moscow time on Monday is $104.58 per barrel, up $0.19 (0.18%) from the previous session’s closing price. At the end of trading on Friday, these contracts fell by $0.32 (0.3%) to $104.39 per barrel.

The price of WTI oil futures for May at the electronic trading of the New York Mercantile Exchange (NYMEX) by this time rose by $0.05 (0.05%) – to $99.32 per barrel. On Friday, the cost of these contracts fell by $1.01 (1%), to $99.27 per barrel.