Oil prices fell marginally in early Asia trading as investors weighed supply concerns against the impact of a worldwide economic downturn on demand.
Brent crude futures fell to US$97.81 a barrel as of 9.49 A.M. (Thai time). In the previous session, they rose to a session high of US$99.56 a barrel, the highest since Aug 31.
US West Texas Intermediate crude held near $92 a barrel, after losing 0.9% on Monday, as China reaffirmed its commitment to Covid Zero, hurting the demand outlook. It earlier rose 74 cents to a session high of US$93.74 a barrel, the highest since Aug 30.
Traders are anticipating the impact of forthcoming European Union curbs on Russian oil exports, as well as the recent move by the Organization of Petroleum Exporting Countries and its allies, known as OPEC+, to cut output.
Crude has fallen by over a quarter from its June highs, as fears of a global downturn, tighter monetary policy, and a strong US dollar have knocked on prices. US inflation data scheduled on Thursday may provide fresh indications about the level of inflationary pressures and the Federal Reserve’s likely next moves, which has been rapidly raising interest rates this year.