In contrast to the decline in WTI.

World oil prices

At the close of the first trading session of the week, oil prices rose by around $1. Prices reversed their earlier declines as investors became optimistic that fuel demand in China – the world's largest oil importer – would be boosted during the upcoming holiday period in the East Asian country.

Brent crude futures for June delivery rose $1.07, or 1.3%, to $82.73 per barrel, while US WTI crude rose 89 cents, or 1.1%, to $78.76 per barrel.

Last week, both benchmark oil prices fell by more than 5%, marking the first weekly decline after a four-week streak of gains, driven by lower-than-year-old US gasoline demand and concerns about the global economy .

China's bumpy economic recovery after the Covid-19 pandemic has clouded the outlook for oil demand, although Chinese customs data last Friday showed China imported a record volume of oil in March.

Reuters reports that booking rates in China for overseas travel during the upcoming International Labor Day holiday indicate a continued recovery in tourist numbers to Asian countries. However, these figures remain a considerable distance from pre-Covid-19 levels due to soaring long-haul airfares and insufficient flights to meet demand.

Bob Yawger, director of energy futures contracts at Mizuho, said: “There is a lot of optimism surrounding the Chinese holidays as it relates to jet fuel demand, the first verifiable figures on Chinese demand.”

Supply constraints, stemming from OPEC+'s plan for additional supply cuts starting in May, could also accelerate oil price increases.

"The planned OPEC+ production cuts and the prospect of strong demand from China could support prices in the coming days," commented independent oil analyst Sugandha Sachdeva.

In other news, oil exports from northern Iraq have shown promising signs of restarting after a month-long stalemate.

Refining margins in Asia have fallen due to record output from leading refineries in China and India, limiting the region's demand for Middle Eastern supplies in June.

This weekend, the U.S. Federal Reserve will release its final key report on U.S. employment, inflation, and consumer spending ahead of its May policy meeting. Additionally, some of the world's largest oil companies, including Chevron and Exxon, will report their first-quarter earnings on Friday.