Oil soared to levels not seen since Covid-19 lockdowns paralysed wide swaths of the world's largest economy as Chinese transport and factories emerged from months of stagnation.
Futures in New York climbed as much as 11.8pc. Chinese oil use is at 13 million barrels a day, just shy of the levels of a year earlier, traders and executives said. The dramatic turnaround, combined with output cuts by major producers, is a strong signal that the market is starting to recover from a collapse in demand and massive oversupply that forced prices below zero for the first time ever last month.
"If China can get back to pre-Covid demand levels then the oil market is interpreting that as there is light at the end of the tunnel for us too," said Stewart Glickman, energy equity analyst at CFRA Research in New York.