UPDATE 7-Oil edges higher on Russian supply concerns in volatile trade

Reuters

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        * 
      China's crude oil demand rebounds, refiners to raise
output
    

        * 
      After Fed hike, BoE raises key interest rate by 50 bps 
    

        * 
      Turkey's central bank cuts policy rate
    

  
 (Updates with settlement prices)
    By Laura Sanicola
       Sept 22 (Reuters) - 
    Oil settled nearly 1% higher on Thursday, paring earlier
gains as the market focused on Russian oil supply concerns, 
rebounding Chinese demand, and as the Bank of England hiked
interest rates less than some had expected. 
    Brent crude futures  LCOc1  settled up 63 cents, or 0.7%, at
$90.46 after rising by more than $2 earlier in the session. 
    U.S. West Texas Intermediate (WTI) crude  CLc1  settled up
55 cents, or 0.7%, at $83.49, after rising by more than $3
earlier in the session.
        Russia pushed ahead with its biggest conscription since
World War Two, raising concerns an escalation of the war in
Ukraine could further hurt supply.  urn:newsml:reuters.com:*:nL1N30S305 
  
        "(Russian President Vladimir) Putin's bellicose rhetoric
is what's propping up this market," said John Kilduff, partner
at Again Capital LLC in New York.
  
        Supply constraints from the Organization of the
Petroleum Exporting Countries (OPEC) added further support,
analysts said.     
  
        "OPEC crude exports have leveled off from a strong
increase at the start of this month," said Giovanni Staunovo,
commodity analyst at UBS.
  
    The European Union is considering an oil price cap, tighter
curbs on high-tech exports to Russia and more sanctions against
individuals, diplomats said, responding to what the West
condemned as an escalation in Moscow's war in Ukraine.
 urn:newsml:reuters.com:*:nL8N30T2OH
        The European Securities and Markets Authority (ESMA) is
also considering a temporary break on energy derivatives as
prices have risen following Russia's invasion of Ukraine in
February.  urn:newsml:reuters.com:*:nL8N30T4HA
  
        The parameters of such a mechanism should be set at the
EU level to apply to all platforms that trade energy
derivatives, it said.
  
    Crude oil demand in China, the world's largest oil importer,
is rebounding, having been dampened by strict COVID-19
restrictions. urn:newsml:reuters.com:*:nL1N30S0N6
    The Bank of England raised its key interest rate by 50 basis
points to 2.25% and said it would continue to "respond
forcefully, as necessary" to inflation.  urn:newsml:reuters.com:*:nL8N30S4MM
    The rate hike was "less than markets had been pricing and
defying some expectations that UK policymakers might be forced
into a larger move," ING bank said. 
    Turkey's central bank unexpectedly cut its policy rate by
100 basis points to 12%, when most central banks around the
world are moving in the opposite direction.  urn:newsml:reuters.com:*:nS8N2YM0AX 
    Following the U.S. Federal Reserve's hefty 75 bps rise on
Wednesday, rate increases also came thick and fast from the
Swiss National Bank, Norges bank and Indonesia's central bank,
and the South African Reserve Bank.
        Interest rate hikes to quell inflation have weighed on
equities, which often move in tandem with oil prices. Rate
increases can curb economic activity and demand for fuel.  
  
    "This just shows how synchronized this current tightening
cycle is," Deutsche Bank said.
 (Additional reporting by Rowena Edwards in London, Muyu Xu in
Singapore
Editing by Kirsten Donovan, David Gregorio and Marguerita Choy)
 ((laura.sanicola@thomsonreuters.com))

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