[Singapore 16th Reuters]–Asian time crude oil futures rebounded from a sharp drop in overnight trading. Supported by tight supply and rising summer demand. The day before, the rise in US interest rates raised concerns about the economic slowdown and declining demand.
As of 0202 GMT (11:02 am Japan time), North Sea Brent futures were up $ 1.10 (0.9%) to $ 119.61 a barrel. US WTI futures rose $ 1.28 (1.1%) to $ 116.59.
Overnight trading has fallen by more than 2% following the Fed’s sharpest rate hike since 1994.
The dollar index has fallen from its highest level since 2002, easing downward pressure on oil prices. Since crude oil prices are denominated in dollars, a rise in the dollar will be expensive for holders of other currencies and will curb demand.