Oil rises on demand outlook, despite China fuel reserves release | Reuters
Oil prices rose sharply 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 were up $1.22, or 1.5%, to $84.94 a barrel at 1339 GMT, after hitting a session low of $83.03.
U.S. West Texas Intermediate (WTI) crude futures gained $1.09, or 1.3%, to $84.66, 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.
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