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Crude prices settled up just 1% Mon as bulls in the market bet China's reopening of its economy from tough COVID policies will boost oil consumption. Brent crude settled up 1.4% at USD79.65. WTI crude settled up 1.2% at USD74.63.

Demand for oil in China typically rises each year after the Lunar New Year. But with Beijing pivoting from a COVID-zero to a "COVID-anything" policy, there's no telling yet how its oil demand will fare. Data last week showed Chinese manufacturing activity shrank for a 5th straight month in Dec, as the country grappled with an unprecedented spike in coronavirus cases.

Despite this, Beijing is pressing forth with enthusiasm on its reopening, with officials saying they expected about 2 b trips domestically during the Lunar New Year season, nearly double last year's and 70% of 2019 levels.

In oil-specific developments, China also issued a 2nd batch of 2023 crude import quotas, according to sources and documents reviewed by Reuters, raising the total for this year by 20% from the same time last year.

"Oil's downward trend was approaching critical support, so energy traders were eagerly looking for any reason to jump back into the oil trade," said Ed Moya, analyst at OANDA. "Chinese hopes for an improving reopening from COVID could help propel oil prices much higher."