Oil prices are declining after a significant increase the day before

World oil prices are declining on Monday after an active increase last Friday, caused by expectations of easing coronavirus restrictions in China. 

The current quotation of Brent crude oil is $97.30 per barrel (last week's high is $98.80). North American WTI crude is trading near $91.20 per barrel after rising to $92.85 on Friday. In general, according to the results of last week, Brent rose by 5.1% and ended trading at the highest since the end of August, and WTI increased in price by 5.4%.

The prices were supported by statements by China's leading epidemiologists that a significant change in the rhetoric of the country's authorities regarding the coronavirus pandemic is expected in 2023. Investors expected that most quarantine restrictions would be lifted in the near future. 

However, already at the weekend, the Chinese government announced that it intends to continue to strictly adhere to the policy of zero tolerance for COVID-19, which caused a local decline in prices at the beginning of the new trading week.

Analysts note that currently the dynamics of the oil market mainly depends on China. And if Beijing does loosen the viral restrictions, oil prices may rise against the background of increased demand.