Oil closes higher amid optimism on demand in China

Oil closed higher today, Dec. 19, amid optimism about the outlook for crude demand and plans to replenish the US strategic reserve.

Chinese President Xi Jinping concluded a meeting to set priorities for 2023 that include restoring and expanding consumption, which could help support energy demand even as COVID-19 cases increase.

Meanwhile, the US Department of Energy announced last week that the authorities are moving to refresh the strategic petroleum reserve, starting with the purchase of 3 million barrels at a fixed price.

However, oil is heading towards recording the second monthly decline in a row, with concerns about the recession of the American and European economies in the next year, amid the continued raising of interest rates by central banks.

Brent crude rose 0.9%, or 76 cents, to close at $79.80 a barrel. WTI crude increased by 1.2%, or 90 cents, to $75.19 a barrel.