Oil closes higher on positive demand outlook; Brent at $92

Oil drilling rigs

Oil closed in the green today, Sept. 19, buoyed by the optimism surrounding crude demand and amid supply concerns.

Bank of America said it expects the average oil price next year would reach $100 per barrel, supported by demand recovery in China and the decline in Russian supplies.

China began easing COVID-19 restrictions in the city of Chengdu, which has a population of more than 21 million people. This, in turn, helped calm demand concerns in the world's second largest energy consumer. Meanwhile, China's exports of gasoline and diesel also rebounded.

Separately, Reuters reported, citing an internal document, that the OPEC+ failed to achieve its oil production target in August, as supplies were 3.583 million barrels per day less than the target.

Investors are also waiting for the decisions of a number of central banks around the world this week, led by the Federal Reserve, to monitor the prospects for monetary policy and its impact on economic activity and demand for crude.

Brent crude futures rose 0.7%, or 65 cents, to close at $92 a barrel, recovering from a drop to $88.50 earlier in the trading.

WTI crude rose 0.7%, or 62 cents, to $85.73 a barrel.