By Stephanie Kelly

(Reuters) – Oil prices rose Wednesday in Asian early trade, extending gains over the prior session following China’s central banking statement that it will support its economy.

But, futures are affected by worries about demand, as Beijing officials raced for control of a COVID-19 epidemic and to avert the same crippling city lockdown that has plagued Shanghai for over a month.

Futures rose 1.1% to $106.10 per barrel at 0019 GMT. U.S. West Texas Intermediate Crude Oil futures rose 0.8% or 84cents to $102.54/barrel

In volatile trade, crude oil prices were up 3% during the session before.

China’s central bank announced Tuesday that it would increase prudent monetary support for its economy. Any stimulation would increase oil demand.

Gazprom, Russia (MCX) has informed Poland’s PGNiG that it would stop gas supply to the Yamal Pipeline from Wednesday morning. PGNiG released a statement. Gazprom indicated that Poland would have to pay under a new arrangement starting on Tuesday.

NYMEX ultra low-sulfur diesel futures rose more than 9 percent on Tuesday, to close at $4.47 per gallon. This is a new record.

U.S. government data regarding crude inventories will be available later in the day. According to industry data, Tuesday’s report showed that gasoline inventories dropped and that distillate stocks increased last week. [API/S]