Oil prices jump 2%, Brent exceeds $76

Oil drilling rigs

Oil prices closed higher today, Oct. 22, supported by positive expectations of demand from China and ongoing concerns that the conflict in the Middle East could widen and threaten crude flows from the region.

Brent crude futures for December delivery rose 2.35%, or $1.75, to close at $76.04 a barrel.

WTI crude futures for November delivery (the contract expires today) rose 2.2%, or $1.53, to $72.09 per barrel.

The People's Bank of China cut the one-year lending rate by 25 basis points to 3.1%, while the five-year borrowing cost was reduced to 3.6%.

Meanwhile, the American Petroleum Institute's report on oil inventories is expected later today, and the US Energy Information Administration is scheduled to release official inventory data on Oct. 23, amid expectations of an 800,000-barrel increase in crude inventories.