WASHINGTON (dpa-AFX) - Crude oil futures settled sharply higher on Monday as concerns about outlook for energy demand eased slightly on news new Covid-19 cases in China dropped to the lowest level in more than a week.
The dollar's weakness, ahead of the upcoming policy statement from the Federal Reserve, contributed as well to the rise in crude oil prices.
The dollar index dropped to 106.19 in the European session before recovering to 106.50, still down more than 0.3% from the previous close.
West Texas Intermediate Crude oil futures for September ended higher by $2.00 or about 2.1% at $96.70 a barrel.
Brent crude futures was up $1.68 or 1.71% at $100.06 a barrel a little while ago.
The Fed is widely expected to raise interest rates by another 75 basis points. CME Group's FedWatch tool is currently indicating a 77.5% chance of a 75 basis point interest rate hike and a 22.5% chance of a 100 basis point rate hike.
Although Libya's National Oil Corporation said it aimed to bring back production to 1.2 million barrels per day (bpd) in two weeks, from around 860,000 bpd, many are of the view that output from Libya will likely remain volatile due to tensions over clashes betwen rival political factions over the weekend.
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