The upward effect of the loosening decisions in the epidemic measures from China continues to be seen in the oil market.

Oil rallied for a second day as signs of further relaxation of China’s Covid-19 restrictions, and a critical North American pipeline remains closed.

U.S. crude rose to $74 a barrel after closing 3 percent on Monday.

China’s ambassador to the U.S. has raised hopes for demand at the world’s largest oil importer, saying the country will continue to relax restrictions and welcome more international travelers soon.

China is rapidly removing its zero-case policy, but the rise in cases has raised concerns about energy consumption over the winter. Economists also expect China to loosen its fiscal and monetary policy to support growth.

Vishnu Varathan, Head of Economy and Strategy at Mizuho Bank Asia in Singapore, said: “The reopening and the accompanying forecast of higher oil demand will overshadow fears of a slowdown in growth. There is also the coordinated policy stimulus that kickstarts the economic recovery.”

Crude oil is on a quarterly decline for the first time since mid-2019, as concerns over the global economic outlook and weak liquidity in the oil market exacerbate price volatility.