An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023.
Brent crude futures were up 8 cents, or 0.1%, at $83.53 a barrel by 0245 GMT, after initially falling 0.5%.
Higher interest rates increase borrowing costs for businesses and consumers, which could slow economic growth and reduce oil demand.
"Crude prices are going to struggle here as we have bearish sentiment in the world's two largest economies," said Edward Moya, an analyst at OANDA.
Reporting by Katya Golubkova; Editing by Sonali Paul and Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.
Persons:
Tina Teng, Teng, Edward Moya, Katya Golubkova, Sonali Paul, Muralikumar
Organizations:
REUTERS, Rights, Brent, U.S . West Texas, CMC Markets, Traders, U.S, U.S . Federal, OANDA, Thomson
Locations:
Zhoushan, Zhejiang province, China, U.S, OPEC, China's, U.S .