Oil price stabilises amid weaker dollar, monetary policies

Oil prices stabilised on Wednesday following declines earlier as the U.S. dollar eased ahead of a crucial interest rate decision by the U.S. Federal Reserve.

Brent crude futures, which have risen by around 3% this week, were up 0.78 cents or 1.04% to $76.10 a barrel, West Texas Intermediate (WTI) crude futures adds 0.62 cents or 0.89% to $70.29, while gasoline rose by 0.053 representing 2.09% to $2.592 per barrel.

However, natural gas traded down by 0.114 cents or 4.86 % to $2.233.

Nigeria’s Brass River and Qua Iboe traded up to $74.41, adding 2.94 cents or 4.00% each.

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• Oil price stabilises amid weaker dollar, monetary policies

Oil prices dropped earlier in the day following an unexpected rise in UK inflation in February, raising fears of further interest rate hikes a day before the Bank of England announces its latest interest rate decision.

Data from the American Petroleum Institute had also called demand into question after it showed an unexpected rise in U.S. crude inventories last week, sources said, defying analyst estimates of a decline.

Official data from the Energy Information Administration, the statistical arm of the U.S. Department of Energy was due on Wednesday.

Brent prices last week hit their lowest since 2021 on concern that the rout in bank shares could trigger a global recession and cut fuel demand.