Oil closes higher after volatile session, Brent above $80

Oil rigs

Oil prices rose today, Jan. 10, amid optimism about demand from China and despite continued concern about the global economic outlook.

Crude prices experienced significant fluctuations today, after the World Bank cut its forecast for global economic growth this year, warning of recession risks.

Oil was also subjected to some pressure after statements by a number of Federal Reserve officials pointing to the desire to raise interest rates above 5% and keep them for a period of time to control inflation.

However, sentiment improved later with expectations of strong oil demand from China this year as the country continued to ease restrictions related to COVID-19.

Meanwhile, the US Energy Information Administration cut its forecast for oil prices this year by about 10%, with increasing estimates for crude production in the United States.

In terms of trading, Brent crude futures for March delivery rose by 0.6%, or 45 cents, to reach $80.10 a barrel upon settlement, after swinging between $80.89 and $78.81.

WTI crude for February delivery increased 0.7%, or 49 cents, to $75.12 a barrel.