Oil prices held steady on Tuesday as investors assessed the outlook for oil demand due to a potential recession in Europe and the U.S.
The dollar’s weakness and hopes of a fuel demand recovery from top importer China helped to cap losses, if any.
Benchmark Brent crude futures slipped 0.1 percent to $88.13 per dollar, while WTI crude futures were virtually unchanged at 81.62.
With several Fed officials hinting at a slowing of the pace of rate hikes in recent days, traders now bet on a unicorn-like “soft landing” for the U.S. economy.
The euro zone economy swung to expansion in January, a purchasing managers survey showed today, adding to signs that the region could face a milder-than-expected downturn this winter.
As the oil market tightens, economists at Commerzbank expect to see Brent prices of $100 in the second half of the year. However, analysts say that the oil market is still likely to be oversupplies in the short term.
The material has been provided by InstaForex Company – www.instaforex.com
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