Oil prices slipped in early trade on Tuesday amid concerns that fuel demand will be crimped by major central banks holding interest rates higher for longer, even with supply expected to be tight.
The world's top economic policy makers, the 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.
With China's Golden Week holiday starting from Sunday, oil prices could gain support from a pick-up in travel and resulting oil product demand from the world's second biggest oil consumer.
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.
Persons:
Moody's, Fitch, JP Morgan
Organizations:
Brent, . West Texas, U.S . Federal Reserve, European Central Bank, ANZ Research
Locations:
U.S, Russia, Saudi Arabia, Moscow