Oil prices slipped in early trade on Tuesday (April 25), paring gains from the previous session, as investors weighed strong holiday travel in China that could boost fuel demand with the prospect of rising interest rates elsewhere slowing economic growth.
Brent crude fell seven cents to US$82.66 a barrel at 0013 GMT, while US West Texas Intermediate crude eased six cents to US$78.70 a barrel.
Oil futures rose more than 1% on Monday on optimism that holiday travel in China would increase demand in the world’s largest oil importer, according to Reuters.
Bookings in China for trips abroad during the upcoming May Day holiday point to a continued recovery in travel to Asian countries. Still, the numbers remain far off pre-Covid-19 levels with long-haul airfares soaring and not enough flights available.
However, investors remain wary about central banks in the US, Britain and the European Union potentially raising interest rates to curb inflation, which could slow economic growth and dent energy demand.
The US Federal Reserve, the Bank of England and the European Central Bank are all expected to raise rates when they meet in the first week of May.
Investors on Tuesday awaited industry data on US oil stockpiles. Analysts polled by Reuters expected the data to show US crude inventories fell by about 1.7 million barrels in the week to April 21.
US government data on inventories is due on Wednesday.
