Oil trims gains to close 1% higher amid demand-supply concerns

Oil drilling rigs

Oil closed in the green today, Sept. 12, supported by a decline of the US dollar and supply concerns.

Brent crude closed up 1.2% at $94 a barrel, after crossing $95 earlier in the session. West Texas Intermediate (WTI) crude rose 1.1% to $87.78 a barrel.

The prices witnessed a noticeable fluctuation today, as trading opened to a decline followed by a sharp rise, which later turned slightly lower at close.

Europe’s statements on significant doubts about Iran's commitment to the new nuclear deal provided some support to the market, with the decline in the prospects of Iranian crude returning to the market.

The markets are awaiting the efforts of Western countries to impose a ceiling on the price of Russian oil, amid Moscow’s threats to prevent the export of crude to any country that agrees to set a maximum price for its crude.

Data from the US Department of Energy showed that the strategic oil reserve in the United States continued to decline, to 434.1 million barrels in the week ended Sept. 9 – the lowest level since October 1984.

Meanwhile, China's oil demand could contract for the first time in two decades this year as Beijing's zero-COVID policy keeps people at home during holidays and reduces fuel consumption, Reuters reported.

The Organization of the Petroleum Exporting Countries (OPEC) is scheduled to release its monthly report on Sept. 13. The report highlights the volume of production and the prospects for demand and supply by member countries.