Oil prices rose on Tuesday as the U.S. dollar eased against major peers but gains were limited by worries of slowing global fuel demand growth amid bearish economic data from key oil importing economies such as China.
International benchmark Brent crude futures gained 3 cents to $93.29 per barrel by 0652 GMT, after falling 0.3% in the previous session. U.S. West Texas Intermediate crude futures for December delivery rose 11 cents to $84.69 per barrel, after a previous decline of 0.6%.
The greenback eased on Tuesday amid signs U.S. Federal Reserve rate hikes are putting the brakes on the world’s biggest economy, while risk sentiment improved as Rishi Sunak prepared to become Britain’s prime minister.
A weaker U.S. dollar makes dollar-denominated oil less expensive for other currency holders and helps push prices higher.
However, signs of uncertain economic activity in the United States and China, the world’s two biggest oil consumers, limited the increase.
“The intraday price swings aside, Brent and WTI futures are stuck in a relatively narrow band since Thursday,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.