Oil rises as markets assess the prospects of interest rate hikes and weak Chinese demand

Oil prices rose on Monday as global supply tightened due to reduced exports from Saudi Arabia and Russia outweighed concerns about global demand growth amid high interest rates.

And by 0301 GMT, Brent crude oil prices rose 75 cents to 85.55 dollars a barrel. West Texas Intermediate crude rose 80 cents to $82.05 a barrel.

West Texas Intermediate crude contracts for September expire on Tuesday, and the more active October contracts rose 73 cents to $81.39 a barrel.

China, the world’s largest crude importer, is drawing down record levels of inventories it built earlier this year as Chinese refineries cut back on purchases after supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, or the group known as OPEC+. This prompted oil prices to exceed $80 a barrel.

In July, Saudi shipments to China fell 31 percent from June, while Russia, with its cheaper crude, remained China’s largest supplier, according to Chinese customs data.