© Stocksak. FILE PHOTO – A pump can be seen at a Manhattan gas station, New York City, U.S.A, August 11, 2022. REUTERS/Andrew Kelly
By Stephanie Kelly
(Stocksak – Oil prices edged up on Tuesday, reversing some previous session’s losses. The U.S. dollar eased while weaker U.S. economic activity data decreased expectations for more aggressive interest rates hikes in the world’s largest economy.
By 0008 GMT, international benchmark futures rose 12c to $93.38 per barrel. U.S. West Texas Intermediate crude futures rose 22cs to $84.80 a barrel.
U.S. business activity contracted for a fourth straight month in October, with manufacturers and services firms in a monthly S&P Global (NYSE:) survey of purchasing managers both reporting weaker client demand.
This weakening could be an indication that the U.S. Federal Reserve’s interest rates increases to combat inflation have been effective and may persuade them to slow down their rate hike policies. This is a positive sign for fuel demand.
The dollar edged lower in the early trade. A weaker dollar makes oil more affordable for non-U.S. buyers.
China’s September crude oil imports of 9.79 Million barrels per day, 2% lower than a year ago, customs data showed Monday. This was due to a reduction in throughput by independent refiners amid low margins and a lackluster demand.