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Global crude oil benchmarks closed higher on Tuesday, 22 October 2024, driven by expectations of rising demand in China and escalating geopolitical tensions in the Middle East, both of which contributed to the surge in prices.

Brent crude rose by $1.75 or 2.4% to settle at  $76.04/barrel.

WTI increased by $1.53 or 2.2% to close at $72.09/barrel.

China’s efforts to reinvigorate its slowing economy were a key factor behind the heightened demand outlook. On Tuesday, Beijing announced an increased crude import quota for 2025, set at 257 million metric tons (5.14 million barrels per day), up from this year’s 243 million tons. Additionally, China's demand tracker recorded a rise of 100,000 barrels per day last week, reaching a six-month high. 

Simultaneously, the ongoing conflict in the Middle East remained a significant driver of market volatility. Despite international diplomatic initiatives aimed at brokering a ceasefire, the unrest persists, contributing to concerns about potential disruptions in the global oil supply.

Written by: Muhammad Hafiz