Brent futures rose by more than 2.5% on Friday after China announced the easing of its COVID Zero strategy. Such a move by the world’s largest oil importer could lead to increased local and international travel and could lift demand for commodities in the country.

According to the National Health Commission, China has reduced the period that people entering the country must spend in quarantine. It will also abandon the practice of fining airline companies that bring infected passengers into the country.

Additional catalyst for oil price rally was in buoyant mood in equity markets because of the downside surprise in the US inflation for October.  Slowing core inflation boosted the hope that the Fed will slow down rate hikes, easing pressure on the economy from high borrowing costs. Major downside in the USD also supported oil prices as it made crude cheaper for buyers using other currencies.