Oil prices have recouped some of their losses after falling to their lowest level in over a year.

Oil prices increased during early Asian trading on Thursday to make up for some of their losses after reaching their lowest point in more than a year in the previous session. The markets calmed down somewhat after Swiss regulatory authorities decided to provide financial rescue for Credit Suisse bank.

At 5:55 am GMT, Brent crude futures rose by 92 cents, equivalent to 1.25%, to $74.61 per barrel. West Texas Intermediate crude futures also increased by 81 cents or 1.2%, to $68.42 per barrel. Earlier during Thursday’s session, both benchmark crudes had risen by over a dollar.

Yesterday, on Wednesday, they hit their lowest levels since December 2021 after falling for three consecutive days. According to Reuters, Brent has lost almost 10% since Friday’s close while US crude has decreased by about 11%.

Later today on Thursday, policymakers at the European Central Bank are expected to lean towards raising interest rates by half a percentage point, as the economy of the Eurozone regains strength while inflation is expected to remain high for years.

Increasing interest rates may cause a decrease in demand for oil due to a slowdown in economic growth. Additionally, fears of worsening financial crisis in the banking sector can also affect the demand for oil.

Meanwhile, data revealed that the Chinese economy had bounced back in the first two months of 2023 following the lifting of strict COVID-19 containment measures.

The monthly report released by the International Energy Agency stated yesterday that there is an anticipated increase in demand for oil from China, following a day after OPEC raised its forecasts for Chinese demand in 2023.