Oil closes at highest levels in two weeks

Oil drilling rigs

Oil closed higher today, Aug. 29, as investors assessed demand and supply outlook. Russian crude exports recorded their highest levels in eight weeks; meanwhile, the largest Chinese banks moved to cut interest rates.

Russia's exports of crude oil by sea rose by 880,000 barrels per day week-on-week to 3.4 million barrels per day, in the week ended Aug. 27, Bloomberg reported, citing tanker tracking data..

Average crude shipments for four weeks increased by 40,000 barrels per day, during the same period, compared to the previous four weeks.

Meanwhile, the largest state-owned banks in China have cut interest rates on deposits in local currency for at least the third time in a year. Rates are down by between 5 and 20 basis points, to counter the deterioration of the real estate sector, weak consumer

spending and declining credit growth, Bloomberg reported, quoting sources familiar with the matter.

Hurricane Idalia is headed towards the US Gulf Coast of Florida, where it is expected to reach on Aug. 30. The hurricane might lead to power outages, further impacting oil production.

The American Petroleum Institute report on oil inventories is expected later today, and the US Energy Information Administration is scheduled to release official data for inventories on Aug. 30, amid expectations of a decline in crude stocks by 1.35 million barrels.

Brent crude futures for November delivery increased by 1.25%, or $1.04, to $84.91 a barrel, with the most active contracts recording the highest settlement in two weeks.

WTI crude for October delivery rose 1.3%, or $1.06, to record $81.16 a barrel—the highest settlement since Aug. 14.