Global Crude Oil Prices Rise as Value of US Dollar Falls, Energy News, ET EnergyWorld
Oil prices edged higher on Tuesday, reversing some of the previous session’s losses, as the U.S. dollar eased amid weaker data on U.S. business activity dampened expectations for increases. more aggressive interest rates in the world’s largest economy.
International benchmark Brent crude futures gained 12 cents to $93.38 a barrel at 0008 GMT, while US West Texas Intermediate crude futures rose 22 cents to $84.80 a barrel .
U.S. business activity contracted for a fourth consecutive month in October, with manufacturers and service companies in a monthly S&P Global survey of purchasing managers reporting weaker customer demand.
This weakening could indicate that the US Federal Reserve’s interest rate hikes to fight inflation have worked and could persuade it to slow down its rate hike policies, a positive signal for fuel demand.
Meanwhile, the US Dollar Index fell slightly in early trading. A weaker dollar makes oil cheaper for non-US buyers.
Limiting the gains, China’s September crude imports of 9.79 million barrels a day were 2% lower than a year earlier, customs data showed on Monday, as independent refiners cut throughput amid thin margins and lackluster demand.