Oil Prices Edge Higher

Oil edged up on Wednesday, a day after prices fell through $100 a barrel for the first time since April, but gains were limited by caution ahead of US inflation data that could weaken the market.
Brent crude futures were up 45 cents, or 0.5%, at $99.97 a barrel. US West Texas Intermediate crude gained 44 cents, or 0.5%, to $95.27, Reuters reported.
Investors have sold oil positions on worries that aggressive interest rate hikes to stem inflation will sharply slow economic activity and hit oil demand. Prices fell by more than 7% on Tuesday in volatile trading.
A further concern is that US interest rate rises will push up the dollar, also undermining oil prices.
"Lingering recession fears continue to hit the market, whilst the strength of the USD and flare-up in Covid cases in parts of China is certainly not helping," said Warren Patterson, the head of commodities strategy at ING.
Oil is generally priced in US dollars, so a stronger greenback makes the commodity more expensive to holders of other currencies, putting downward pressure on demand.
Stephen Innes, managing partner of SPI Asset Management, pointed to the expected release of possibly hot US consumer price index data later on Wednesday.