Crude oil closes higher as Chinese oil demand recovers

Crude oil futures closed higher on Thursday (Sept. 22), boosted by recovering oil demand in China. In addition, oil supplies are expected to tighten due to the escalation of the war between Russia and Ukraine.

  • WTI crude futures were up 55 cents, or 0.7%, at $83.49 a barrel.
  • BRENT crude futures were up 63 cents, or 0.7%, at $90.46 a barrel.

Crude oil futures closed higher after reports that Chinese oil demand is showing signs of recovery. Earlier, oil demand had declined due to the impact of the Covid 19 measures.

In addition, investors expect oil supplies to tighten. Especially during the approaching winter. Russian President Vladimir Putin announced the mobilization of 300,000 troops to escalate the war with Ukraine, the first Russian mobilization since World War II.

Commenting on recent developments in Russia, OVD-Info, a human rights group in Russia, said, “Russians protesting Putin’s mobilization announcement were arrested by police. Those who refuse summons to military service face a maximum prison sentence of 10 years.

However, the positive movement of the oil contract was limited by the appreciation of the dollar. The dollar index rose 0.64% against the six major currencies of a basket of currencies to 111.3520. The appreciation of the dollar made crude oil contracts quoted in dollars more expensive for traders holding other currencies.

Investors are also concerned that the Federal Reserve’s accelerated rate hikes could plunge the economy into recession and hurt oil demand.

The Spot Market is Open

Friday, September 23, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.00

83.21

-0.28

-0.34%

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