Oil stabilizes midway between China’s reopening, economic concerns

Crude oil prices stabilized on Tuesday amid concerns about the global economic slowdown and the expected increase in US oil inventories, which was offset by hopes for a recovery in fuel demand from China, the world’s largest oil importer.

Brent crude fell 30 cents, or 0.3 percent, to $87.89 a barrel by 1010 GMT, and US West Texas Intermediate crude fell 35 cents, or 0.4 percent, to $81.27 a barrel.

This week, traders are watching for more business data that could indicate strength in global economies during earnings reporting season.

On Tuesday, the dollar hovered near its lowest level in nine months against the euro and gave up its recent gains against the yen, at a time when dealers are assessing the prospects of a recession in the United States as well as the path of the Federal Reserve (the US central bank) on interest rates.

Crude oil prices in physical markets started the year higher, as China, which is no longer operating under Corona restrictions, showed signs of more buying, and dealers feared that sanctions imposed on Russia could lead to tighter supplies.