Oil climbed for the first time in three sessions as Chinese central bank assurances of economic support eased fears that a new round of virus lockdowns will crimp crude demand. Diesel markets also spiked amid a global clamour for supplies.

West Texas Intermediate rose as much as 1.9pc after shedding more than 5pc in the previous two sessions. China’s central bank pledged to ensure ample liquidity and assist sectors battered by the pandemic, even as virus testing expanded in Beijing.

The resurgence of Covid-19 has hammered fuel consumption in the world’s second-largest economy.

Meanwhile, fuel markets are showing signs of tightness with benchmark US diesel futures soaring to the widest premium over later-dated contracts in at least 14 years as inventories dwindle. In Europe, Russia reportedly cut off natural gas shipments to Poland as European Union members mull a ban on Russian oil deliveries.

“Diesel prices once again continue to steal the show as the market seems to be dealing with the realisation that a demand slowdown is tomorrow’s problem, and today there’s still not enough supply to go around,” analysts at wholesale-fuel distributor TACenergy wrote in a note to clients.

Traders are focused on Chinese demand and Russian supplies as the war in Ukraine stretches into its third month.

Crude prices have oscillated around $100 a barrel, and key market gauges in Europe have weakened with softer Chinese consumption helping ease shortage concerns.

Inflationary pressures are growing around the world, forcing central banks to contemplate monetary-tightening measures that could choke off the economic rebound.

Brent crude’s prompt spread – the gap between its two nearest contracts – has collapsed to the weakest level since late last year, excluding expiration days, coming close to trading in contango – where the futures price of a commodity is higher than the spot price.

Chinese officials on Monday said virus testing would take place in a further 11 of Beijing’s 16 districts, moving beyond just Chaoyang, where most of the infections have been detected since Friday.

A weeks-long lockdown in Shanghai has become more severe, with workers in hazmat suits fanning out to install steel fences around buildings.