Oil declines with demand concerns in US, strong dollar

By Sibel Morrow

ANKARA (AA) – Oil prices slid on Tuesday over concerns about economic growth and oil demand in the US, the world's largest oil consumer, and as weaker US dollar increases traders' appetite for cheaper dollar-indexed crude oil.

International benchmark Brent crude traded at $79.32 per barrel at 9.55 a.m. local time (0655GMT), a 0.41% decrease from the closing price of $79.65 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $74.35 per barrel at the same time, a 0.37% loss after the previous session closed at $74.63 a barrel.

Uncertainty around the economic growth and oil demand in the US and concerns that the Federal Reserve will continue its hawkish stance in its fight against rising inflation rates in the country exert downward pressure on prices.

Federal Reserve Chair Jerome Powell will deliver a speech at a central bank conference later in the day, which might provide some hints about the Fed's strategy.

Investors are monitoring the fresh inflation data to be released later this week.

Prices also came under further pressure with demand jitters as the US dollar index, which pits the dollar against a basket of six global currencies, rose 0.20% to 102.95.

When the dollar gains in value against other currencies, dollar-denominated oil is more expensive for buyers, discouraging trade.