By Gina Lee

Investing.com – Oil was up on Wednesday morning in Asia, over hopes of a fuel demand recovery in China, as the country gradually eases some of its COVID-19 containment measures.

By 11:42 ET (03:42 GMT), the price was up 0.3% to $112.35 It rose by 0.82%, to $110.53. This is after some losses were suffered due to oil falling around 2% over the past session.

Shanghai achieved its three-day milestone with no COVID-19 new cases in quarantine zones. Tuesday’s announcement also outlined plans to lift the six-week-long lockdown.

Stephen Innes, managing director of SPI Asset Management, stated that “beyond this immediate term, less terrible news about China offers a nup in the tail” in a note.

Meanwhile, Tuesday’s showed a draw of 2.445 million barrels for the week ended May 12. Investing.com forecasts a build in 1.533 million barrels. However, a build in 1.618million barrels was recorded during the week before.

Investors are now waiting for, which is due late in the afternoon.

In Russia, production fell by nearly 9% in April 2022, and the country’s production levels fell far below those required under an Organization of the Petroleum Exporting Countries and allies (OPEC+) deal.

However, prices continue to rise due to the fact that reports indicate that the U.S. allows for exports Chevron Corp. (NYSE:) to negotiate oil licenses with Venezuela’s Petróleos de Venezuela, S.A., temporarily lifting a U.S. ban on such discussions, ANZ Research analysts said in a note on Wednesday.

The proposed modifications could eventually lead to increased crude oil supply.

Also on investors’ radars is the European Union’s failure on Monday to persuade Hungary to lift its veto on a proposed embargo of Russian oil. Some diplomats still believe an agreement could be reached at the summit on May 30 and 31.

Jerome Powell, Chairman of the U.S. Federal Reserve also stated Tuesday that central banks would raise interest rates as necessary to reduce inflation.