07.02.202319:14:00UTC+00Oil Futures Settle Sharply Higher

Oil prices climbed higher on Tuesday amid expectations of higher energy demand from China, and on concerns about supply following a massive earthquake in Turkey on Monday.

West Texas Intermediate Crude oil futures for March ended higher by $3.02 or about 4.1% at $77.14 a barrel, the highest close since January 31.

Brent crude futures were up $2.73 or about 3.35% at 83.72 a barrel a little while ago.

The International Energy Agency (IEA) said in a report that China is likely to account for 50% of currently projected global oil demand growth in 2023.

The Organization of the Petroleum Exporting Countries (OPEC) is also optimistic about Chinese oil demand picking up this year.

The massive earthquake that rocked Turkey on Monday forced a significant export facility in that country to shutdown.

Speaking at the Economic Club of Washington, the Federal Reserve Chief Jerome Powell said inflation is beginning to ease, though he expects it to be a long process and cautioned that interest rates could rise more than markets expect if the economic data doesn't cooperate.

"The disinflationary process, the process of getting inflation down, has begun and it's begun in the goods sector, which is about a quarter of our economy," Powell said during an event in Washington, D.C. "But it has a long way to go. These are the very early stages."

Powell spoke in a question-and-answer session at the Economic Club of Washington, D.C. with Carlyle Group co-founder David Rubenstein.