Sonali Paul

(Reuters) – After rising 1% last session, oil prices are little affected on Tuesday as Libya stops some exports. Meanwhile, Chinese manufacturers prepare to reopen factory doors after a COVID-19 Shanghai shutdown that lasted nearly three weeks.

Futures rose 0.2% or 21 cents per barrel to $113.37/barrel at 0020 GMT. U.S. West Texas Intermediate(WTI) crude oil futures dropped 2 cents from $108.19/barrel to $108.19/barrel

The dollar traded at an all-time high of $22 per USD. Gains were modest. Oil buyers who hold other currencies are hurt by a stronger dollar.

After reaching their highest level since March 28, when Libya declared it couldn’t deliver oil from the largest field, and closing another due to protests, both benchmark contracts increased by more than 1% during the session.

As Shanghai’s manufacturing plants prepare to reopen, China was expecting a rise in fuel demand.

However, there are still concerns about demand as China continues its tough measures to control COVID epidemics.

Stephen Innes, managing director of SPI Asset Management, stated that the “tractor pull” between China’s COVID demands crunch and global supply shortages is still ongoing.

The possibility that Russia will ban the EU from buying Russian oil in order to invade Ukraine is keeping the markets on edge. The Ukraine claimed Tuesday that Russia had begun an unanticipated new offensive to the east, calling it a “special operations”.

According to ANZ Research, “Market sentiment was supported in Russia by the minister that more countries would ban Russian oil imports would lead to oil prices exceeding historical highs,” ANZ Research analysts stated in a note.