Brent crude closes higher amid signs of stronger demand

Oil rigs

Brent crude closed higher today, Feb. 21, with signs of stronger demand for crude and fears of continued tightening of monetary policy in the US.

The latest US economic data raised investors' expectations that the Federal Reserve will continue to raise interest rates for a longer period than previous estimates.

Meanwhile, Russian exports of oil transported by sea increased significantly last week, days before the country will start to reduce crude production by 500,000 barrels per day.

Investors are also awaiting signs of a recovery in oil demand from China, as the economy continues to reopen.

Global demand for oil rose in December 2022, by 1.3 million barrels per day, to set a new record, according to according to data from the Joint Organisations Data Initiative (JODI).

The data revealed that crude oil production around the world decreased by 274,000 barrels per day in December, reaching its lowest level in five months.

Brent crude rose 0.1%, or 5 cents, to reach $83.05 a barrel upon settlement, after it fluctuated between $82.56 and $84.20.

WTI crude for March delivery decreased by 0.2%, or 18 cents, to record $76.16 per barrel.

US crude for April delivery fell 0.3%, or 19 cents, to $76.36 a barrel.