Oil prices steady on expectations Fed rate hike to curb fuel demand

Oil prices steadied on Tuesday after rising in the previous sessionon concerns that further U.S. interest rate hikes this week to tame inflation will curb economic growth and fuel demand in the world’s biggest oil consumer, Reuters reported.
Brent crude futures for November settlement rose 3 cents to $92.03 a barrel by 0449 GMT.
U.S. West Texas Intermediate crude for October delivery was at $85.76 a barrel, up3 cents. The October contract will expire on Tuesday and the more active November contract was at $85.29, down 7 cents, or 0.1%.
The dollar remained firm below a two-decade high versus major peers on Tuesday, ahead of a slew of central bank meetings around the world this week led by the U.S. Federal Reserve, which is likely to raise interest rates by another 75 basis points to rein in inflation. read more
The stronger greenback makes dollar-denominated oil more expensive for buyers using other currencies and the expected rate increases have increased concerns that the tightening could trigger a global recession.
“Oil prices have been sliding in a downtrend since mid-June, and recession fears and a slowdown growth in China are still the major bearish factors in general,” said Tina Teng, an analyst at CMC Markets.
While other major economies are tightening, China, the world’s second-largest oil user on Tuesday left its benchmark lending rates unchanged as it tries to balance supporting its sluggish economic growth against the weakening yuan.