WASHINGTON (dpa-AFX) - Crude oil futures settled sharply higher on Monday, buoyed by increased demand for gasoline.
Export cuts by Saudi Arabia and Russia, and geopolitical tensions after news about Russia's bombing of Ukrainian grain export facilities contributed as well for the rise in oil prices.
Oil prices gained also on expectations of further stimulus in China.
West Texas Intermediate Crude oil futures for September ended higher by $1.67 or about 2.2% at $78.74 a barrel.
Brent crude futures were up $1.77 or 2.19% at $82.65 a barrel a little while ago.
The Federal Reserve's interest-rate decision is due on Wednesday, followed by the European Central Bank (ECB) on Thursday and the Bank of Japan (BOJ) on Friday.
The Fed is widely expected to raise rate by 25 basis points. The focus is on the accompanying statement for hint on the central bank's future moves.
'Crude prices are tentatively breaking out as expectations remain for the oil market to remain tight despite all global weakness that is emerging,' says Edward Moya, Senior Market Analyst at OANDA.
Moya adds that oil is getting a boost from Wall Street as optimism grows the end of the Fed's rate hiking campaign appears it could be here. 'Market positioning probably has the oil trade look a lot more attractive than US stocks, so if bullish momentum takes WTI crude to $80, it could have decent momentum behind that move.'
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