Oil prices dipped in early trade on Tuesday. Brent crude futures were down 11 cents at $93.18 a barrel at 0055 GMT and U.S. West Texas Intermediate crude futures were trading 1 cent lower at $89.67.
Both U.S. Federal Reserve and the European Central Bank, have over the recent days reiterated their commitment to fight inflation, signalling tight policy may persist longer than previously anticipated. Higher interest rates slow economic growth, which curbs oil demand.
While supply remains tight as Russia and Saudi Arabia have extended production cuts to the end of the year, Moscow on Monday eased its temporary ban on gasoline and diesel exports, issued separately to stabilise the domestic market.
“Tightening oil supplies could outweigh macroeconomic headwinds. We expect oil to trade above $90 per barrel during the week,” ANZ Research said in a note.
Oil prices have risen by around 30% since mid-year driven mostly by tighter supply, wiping off 0.5 percentage points from the global GDP growth in the second half of this year, according to JP Morgan.
