Oil rises on outlook for higher demand

Published on NewsOK Modified: January 21, 2014 at 3:49 pm •  Published: January 21, 2014

The price of oil rose Tuesday after China's central bank injected credit into the financial system to offset concerns about slower economic growth, and experts raised their forecast for global crude demand.

U.S. crude for February delivery rose 62 cents to close $94.99 on the New York Mercantile Exchange. The February contract expires later Tuesday and most trading has moved to the March contract, which was up 38 cents to $94.97.

Meanwhile, natural gas futures rose more than 2 percent as snow and frigid air descended on the eastern part of the U.S.

The Chinese central bank announced late in the day it would inject additional money into the financial system, reducing fears of a credit squeeze. That helped to offset lingering concerns after Monday's report of slowing economic growth in China.

Also, the International Energy Agency raised its demand forecast for 2014 by 90,000 barrels a day and now sees global appetite for crude reaching 92.5 million barrels a day.

Though it remains fragile, demand from Western industrialized nations is set to rise for the first time since 2010, the Paris-based IEA said, also noting that domestic crude production in the United States in 2013 was 990,000 barrels a day higher than a year earlier.

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