Brent crude futures were higher 70 cents, or 0.78%, to $90.53 per barrel by 1054 GMT. Meanwhile, U.S. WTI crude alerted 71 cents, or 86%, at $83.65.
The price rose more than $1 in the session ahead of news that demand for crude oil from China, the world’s biggest oil importer, was depleted due to strict coronavirus restrictions.
At least three Chinese state oil refineries and a personally run mega refiner are thinking of increasing runs by up to 10% in October from September. They’re eyeing stronger demand and a possible surge in fourth-quarter fuel exports, people with details of the matter stated.
Meanwhile, Russia pushed forward on Thursday with its most significant conscription after World War Two. This increased concerns that an escalation of the war in Ukraine could hurt supply.
The Bank of England raised its key interest rate by 50 basis points to 2.25% to curb prices. It says that despite the economic slowdown, it will continue to respond in a frenzy as inflation demands.
Following the Federal Reserve’s weighty 75 bps increase on Wednesday, rate increases arrived thick and quick from the Swiss National Bank, Norges bank, and Indonesia’s central bank, with an additional hike anticipated from the South African Reserve bank later in the day.
Federal Reserve also said Wednesday that the U.S. borrowings would continue to increase this year, which has moved Brent and WTI to a low point for almost two weeks.
Further pressure pursued stock builds. U.S. crude inventories expanded by 1.1M barrels in the week to Sept. 16 to 430.8M barrels, less than analysts’ anticipations in a Reuters survey for a 2.2M-barrel climb.