Brent declines on the rise in US Dollar and caution

Benchmark Brent crude opened trading on Tuesday slightly lower in light of the dollar’s rise and traders awaited signals from the minutes of the latest Federal Reserve meeting on interest rates, after optimism about demand amid tight supplies led to a rise in prices on Monday.

Brent crude fell 59 cents, or 0.5 percent, to $83.57 a barrel on Tuesday. As for the US West Texas Intermediate crude for March, whose contract expires on Tuesday, it rose 78 cents, or 1.02 percent, to $77.12 at 0146 GMT.

The West Texas Intermediate contract for the month of April, which is currently the most active, rose 52 cents, or 0.68 percent, at $ 77.07.

Traders await the minutes of the latest meeting of the Federal Reserve, due for release on Wednesday, as data on core inflation raises the risk that interest rates will remain high for a longer period.

With China’s oil imports likely to reach a record high in 2023 and demand from India, the world’s third largest oil importer, rising amid tight supplies, eyes are now turning to monetary policy in the world’s largest economy and oil consumer.

Analysts say that oil prices may rise in the coming weeks due to a lack of supply and a recovery in demand, despite the obstacles in the near term such as raising US interest rates.

Russia plans to cut oil production by 500,000 barrels per day, or about five percent of its production, in March after the West imposed ceilings on Russian oil and oil prices.