On Thursday, oil surged after sliding 1 per cent in the previous session on the prospect of higher Chinese demand and geopolitical risks. Brent crude futures were up USD 1.09, or 1.21 per cent, to USD 90.92 per barrel at 0815 GMT. US West Texas Intermediate (WTI) crude was up USD 1.11, or 1.34 per cent, at USD 84.05.

Notably, crude oil demand in China, the world’s largest oil importer, is rebounding, which was dampened by strict COVID-19 restrictions. Chinese state oil refineries are considering increasing runs by up to 10 per cent in October from September, seeking stronger demand and a possible rise in fourth-quarter fuel exports.

Keeping prices controlled, the market is awaiting a Bank of England decision in which a rise in interest rates is expected in a bid to control inflation that is just off a 40-year high. On Thursday, policy decisions are also coming from the Swiss National Bank, the Norges Bank, Bank Indonesia, the Central Bank of Turkey and the South African Reserve Bank.
On Wednesday, the US Federal Reserve hiked interest rates by 75 basis points for the third time and indicated that borrowing costs would keep increasing this year, in a move that sent Brent and WTI to a nearly two-week low. Further pressure followed stock builds. US crude inventories increased by 1.1 million barrels in the week to September 16 to 430.8 million barrels.