Oil prices rose on Wednesday as signs of slowing inflation in the United States eased fears that the world’s largest oil user may face a recession because of further interest rate hikes and a weaker dollar supported some buying interest.
Brent crude futures gained 32 cents, or 0.4%, to $85.78 a barrel at 0407 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 42 cents, or 0.5%, to $79.29 a barrel.
Both benchmarks were up for a second day, after gaining about 1% in the previous session.
“Sentiment shifted amid a positive company reporting season. Signs of cooling inflation also raised expectations that the Fed will be able to pause rate hikes,” ANZ commodities analyst said in a note.
Tamer rate hike expectations helped lower the dollar index , which supported oil prices as a weaker greenback makes the commodity cheaper for buyers holding other currencies.
All eyes will be on a meeting on Wednesday of the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, where producers are expected to endorse their current output targets agreed in November.
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