Oil prices were little changed on Tuesday, balancing between fears that raising interest rates in the US could slow the economy and signs of recovery in China.
According to the latest data published on the website OilPrice.com on Wednesday, the price of Brent oil fell to $82.93 per barrel. Texas WTI crude is trading at $79.
On the London market, the price of a barrel after noon on Tuesday was almost the same versus the previous closing and amounted to 84.58 dollars. The American market had no significant changes, where a barrel traded at $80.81.
In the morning session, traders felt optimistic after seeing data that China’s economy grew at 4.5 percent in Q1, which was higher than anticipated, and that the refineries hit an all-time high in March.
A weaker dollar also supported prices due to the improved purchasing power of buyers with other currencies and indications that Iraq and Kurdistan could restart oil exports through the Turkish port of Ceyhan after an almost three-week blockade.
Fear of raising interest rates
During the day, sentiment eased, and fears prevailed again that another quarter-point increase in US interest rates in May, as expected, could weigh on economic growth.
OANDA brokerage analyst Craig Erlam explained that the next step could depend on global growth and whether the economy weathers the latest storm, especially in the US, where tighter credit could weigh heavily on growth by the end of the year.
The Organization of the Petroleum Exporting Countries (OPEC) separately announced that the price of a barrel of its members’ oil basket fell 37 cents to $86.43 on Monday.