Oil closes up 1%, Brent climbs above $94

Oil drilling rigs

Oil settled higher today, Sept. 14, supported by expectations of demand recovery in China and supply-related developments.

Crude prices were also buoyed by the announcement from China’s city of Chengdu that it will gradually ease the COVID-19 lockdown measures – a positive for crude demand.

Data from the US Energy Information Administration (EIA) showed crude oil inventories rose by 2.4 million barrels in the week ended Sept. 9, exceeding expectations of 1.9 million barrels.

Gasoline stocks in the US fell 1.8 million barrels last week, while distillate stocks rose 4.2 million barrels in the same period.

Meanwhile, the International Energy Agency (IEA) lowered its forecast for oil demand growth this year to two million barrels per day, which is considered to be about 110,000 barrels lower than its previous estimates.

The agency expected a decline in Russian oil production by about 1.9 million barrels per day by February, as the European Union ban on Moscow's exports of crude and refined petroleum products comes into force.

According to a Bloomberg report, the Joe Biden administration is considering buying oil in the event the price falls below $80 a barrel, in order to refill the strategic reserve.

In terms of trading, Brent crude rose 1%, or 93 cents, to close at $94.10 a barrel. WTI crude gained 1.3%, or $1.17, to reach $88.48 a barrel.