Crude oil prices edged higher in Asian trade on Tuesday amid hopes of a fuel demand recovery from top importer China, although concerns about a slowdown in the U.S. economy capped gains.
Brent crude was down 5 cents to $88.14 per barrel by 0436 GMT after rising to a session high of $88.36. WTI crude rose 2 cents to $81.64 per barrel after climbing to $81.88 earlier in the session.
Commodities like crude oil, refined petroleum products, LNG, and soybeans are set to benefit from China’s demand tailwind, analysts at Goldman Sachs said.
Crude oil prices in physical markets have started the year with a rally, as China, no longer held back by pandemic controls, has shown signs of more buying and as traders have worried that sanctions on Russia could tighten supply.
The dollar hovered near a nine-month low to the euro and gave back recent gains against the yen, as traders continued to gauge the risks of a U.S. recession and the path for Federal Reserve policy.
A weaker greenback makes dollar-denominated commodities, including oil, cheaper for buyers using other currencies.
