Oil steadies after falling on rate hike worries, Russian crude flows
Oil prices steadied in early Asian trade on Tuesday after falling by more than 2% in the previous session on the threat of further interest rate hikes and continued Russian crude flows.
Brent crude futures LCOc1 gained 28 cents to $85.18 per barrel by 0155 GMT, while US West Texas Intermediate (WTI) crude CLc1 futures were up 9 cents to $77.99.
Investors expect the US Federal Reserve will hike interest rates by 25 basis points on Wednesday, with a half-point increase by the Bank of England and European Central Bank the following day. Higher rates could slow the global economy and weaken oil demand.
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The market also turned its attention to a planned virtual meeting on Feb. 1 at 1100 GMT of the ministers of the Organization of the Petroleum Exporting Countries (OPEC) and others including Russia, a group known as OPEC+.
The panel is expected to recommend keeping the oil producer group's current output policy unchanged when it meets this week, five OPEC+ delegates told Reuters on Monday.
OPEC+ agreed in October to cut its production target by 2 million barrels per day (bpd), about 2% of world demand, from November until the end of 2023.
Russia continues to supply the global market with its oil despite a European Union ban and G7 price cap imposed over its invasion of Ukraine, which pressured prices.
Lending some support to oil prices, the US dollar index has fallen by 1.3% in January so far. A weaker dollar makes crude less expensive for non-US buyers.
