2023-04-25 00:50:46
Oil prices fell in early trade on Tuesday, capping gains from the previous session as investors weigh holiday travel to China that could boost fuel demand against the prospect of higher interest rates. interest in a context of slowing economic growth.
Brent was down 7 cents to $82.66 a barrel at 0013 GMT, while U.S. oil West Texas Intermediate fell 6 cents to $78.70 a barrel.
Oil futures rose more than 1% on Monday on optimism that holiday travel to China would boost demand in the world’s biggest oil importer.
Reservations in China for outbound travel during the upcoming May Day holiday indicate a continued recovery in travel to Asian countries. However, the figures are still far from pre-COVID-19 levels, with fares for long-haul flights soaring and insufficient flights available.
However, investors remain concerned that central banks in the United States, United Kingdom and European Union could raise interest rates to curb inflation, which could slow economic growth and reduce energy demand.
The US Federal Reserve, Bank of England and European Central Bank are all expected to raise rates when they meet in the first week of May.
On Tuesday, investors awaited industry data on US oil inventories. Analysts polled by Archyde.com had expected U.S. crude inventories to fall by about 1.7 million barrels in the week to April 21. [API/S]
Data from the US government on stocks is due on Wednesday. [EIA/S]
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