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NEW YORK: Oil prices rose on Monday, shaking weaker demand expectations as supply worries mount as winter approaches.

Brent crude futures rose $1.51, or 1.6%, to $94.35 a barrel as of 12:42 p.m. EDT (4:42 p.m. GMT). U.S. West Texas Intermediate crude rose $1.28, or 1.5%, to $88.07.

U.S. emergency oil stocks fell 8.4 million barrels to 434.1 million barrels in the week ended Sept. 9, their lowest level since October 1984, according to data released Monday by the U.S. Department. Energy.

US President Joe Biden laid out a plan in March to release 1 million barrels a day over six months from the Strategic Petroleum Reserve to combat high fuel prices in the United States, which have contributed to the surge in the ‘inflation.

The Biden administration is assessing the need for new SPR publications after the current program ends in October, Energy Secretary Jennifer Granholm told Reuters last week.

Global oil supplies are expected to tighten further when a European Union embargo on Russian oil comes into effect on December 5.

The G7 will implement a price cap on Russian oil to limit the country’s oil export revenue, seeking to punish Moscow for invading Ukraine, while taking steps to ensure oil can still flow to emerging countries.

The US Treasury, however, warned that the cap could drive up US oil and gasoline prices even further this winter.

The EU’s executive European Commission is due to unveil a set of measures on Wednesday to help energy companies facing a cash crunch.

France, Britain and Germany also said on Saturday they had “serious doubts” about Iran’s intentions to relaunch a nuclear deal. Failure to revive the 2015 deal would prevent Iranian oil from entering the market and keep global supply tight.

In more bearish news for markets, China’s oil demand could contract for the first time in two decades this year as Beijing’s zero-COVID policy keeps people home during holidays and cuts oil consumption. fuel.

The European Central Bank and US Federal Reserve, meanwhile, are poised to raise interest rates further to fight inflation, which could strengthen the US currency and make dollar-denominated oil more expensive for investors. .