The oil prices They were little changed on Tuesday as upbeat economic data from second-biggest consumer of crude China offset concerns that possible U.S. interest rate hikes could slow growth in the world’s largest economy.
He Brent rose 1 cent, or 0.01%, to $84.77 a barrel, while crude futures West Texas Intermediate they closed up 3 cents, or 0.04%, at $80.86.
Figures showed that in the first quarter the Chinese economy grew 4.5%, faster than expected, and that the production of oil refineries reached record levels in March.
“The overall picture for China’s growth still suggests a market that is undersupplied,” said Phil Flynn, an analyst at Price Futures Group.
But the prospect of another US interest rate hike remained a drag on sentiment. Traders expect the Federal Reserve to raise the cost of credit by 25 basis points at its May meeting.
The central bank most likely has another interest rate hike in store to combat inflation, Atlanta Fed President Raphael Bostic said.
Prices also came under pressure as the federal government of Iraq and the Kurdistan Regional Government (KRG) moved towards resuming northern oil exports from the Turkish port of Ceyhan, after they were halted. last month.
The dollar fell in the session, after the optimistic data from China. The weakness of the greenback makes US currency-denominated commodities cheaper for buyers of other currencies.
Most traders, however, believe the recent rally in crude oil prices needs a correction, said Dennis Kissler, senior vice president of trading at BOK Financial.
The oil prices posted gains for the past four weeks, a streak not seen since June 2022.
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