Oil prices recover after falling on US rate hike

Oil prices rebounded on Thursday after falling 1% in the previous session, as fears of tight supplies in the winter outweighed fears of a global recession.

Brent crude futures rose 15 cents, or 0.2 percent, to $89.98 a barrel by 0657 GMT, offsetting losses in early Asian trade.

US West Texas Intermediate crude also rose a cent to $83.04.

Both benchmarks fell on Wednesday to their lowest level nearly two weeks after the Federal Reserve raised interest rates by 75 basis points for the third time to curb inflation and indicated that it would continue raising borrowing costs during the year.

Although the Federal Reserve adopted a hawkish tone on Wednesday, some analysts argued that the lack of a larger rate hike relieved oil markets.

The rising dollar has limited oil’s gains, making crude more expensive for many buyers. On Wednesday, the dollar index touched a 20-year high against a basket of other currencies.