Oil rebounded on Thursday after sliding 1% in the previous
session as concerns over tight supplies heading into winter
eclipsed fears of a global recession, Trend reports with reference to Reuters .
Brent crude futures rose 50 cents, or 0.6%, to $90.33 per barrel
by 0319 GMT, recouping their losses in early Asia trade. U.S. West
Texas Intermediate (WTI) crude rose 45 cents to $83.39.
Both benchmarks fell to a near two-week low on Wednesday after
the U.S. Federal Reserve raised interest rates by 75 basis points
for the third time to tame inflation and signaled that borrowing
costs would keep rising this year.
The market had priced in rate hike expectation and the
announcement from the Fed did not generate much surprise, said
analysts from Haitong Futures.
Meanwhile, some Chinese refineries are considering increasing
runs in October, eyeing stronger demand and a potential reversal of
Beijing's fuel export policy, which could boost crude oil
But oil prices remain under selling pressure due to inventory
stock builds and a worsening economic outlook, said Citi analysts
in a note.
U.S. crude inventories rose by 1.1 million barrels in the week
to Sept. 16 to 430.8 million barrels, smaller than analysts'
expectations in a Reuters poll for a 2.2 million-barrel rise.
The soaring dollar also put a lid on oil price gains as it is
making crude more expensive for many buyers. The dollar index
touched a 20-year high against a basket of other currencies on
Elsewhere, Germany nationalised gas importer Uniper on Wednesday
and Britain said it would halve energy bills for businesses in
response to a deepening supply crisis that has exposed Europe's
reliance on Russian fuel.
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