Oil rises on demand outlook, despite China fuel reserves release | Reuters

Oil rises on demand outlook, despite China fuel reserves release | Reuters

Oil prices rose on Monday as expectations of strong demand and a belief that a key producer group will not turn on the spigots too fast helped reverse initial losses caused by the release of fuel reserves by China, the world's biggest energy consumer.

Brent crude futures rose 70 cents, or 0.8%, to $84.42 a barrel by 1012 GMT, after hitting a session low of $83.03.

U.S. West Texas Intermediate (WTI) crude futures gained 40 cents, or 0.5%, to $83.97, having fallen to $82.74 earlier.

"Fundamentals have not changed, and the oil market will remain tight in the near-term," said Stephen Brennock of oil brokerage PVM Oil.

A Reuters poll showed that oil prices are expected to hold near $80 as the year ends, as tight supplies and higher gas bills encourage a switch to crude for use as a power generation fuel.