Oil Prices Remain Firm After Yesterday’s Slide

Following the threat of further interest rate hikes and continued Russian crude flows, oil prices remained firm in early Asian trade on Tuesday after falling by more than 2% in the previous session.

Meanwhile, it is widely expected that the U.S. Federal Reserve will hike interest rates by 25 basis points on Wednesday, while a half-point increase by the Bank of England and European Central Bank on Thursday.

A higher rates could slow the global economy hence, weaken oil demand.

The market also turned its attention to a planned virtual meeting on Wednesday of the ministers of the Organization of the Petroleum Exporting Countries (OPEC) and others including Russia, a group known as OPEC+.

According to Reuters report, the panel is expected to recommend keeping the oil producer group’s current output policy unchanged when it meets this week.

In last October, OPEC+ agreed to cut its production target by 2 million barrels per day (bpd), about 2% of world demand for the period of last 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.

Brent crude futures gained 28 cents to US$85.18 per barrel by 0155 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 9 cents to US$77.99.

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