Oil prices steady on US dollar weakness; recession fears weigh

Oil prices steadied in early Asian trade on Tuesday as a weaker US dollar lent support, although rising shale production and fears that stubbornly high inflation could lead the world economy into a recession limited gains.

Brent crude futures rose 9 cents or 0.1 per cent to $91.71 per barrel by 1:20 GMT, while US West Texas Intermediate (WTI) crude futures gained 6 cents or 0.1 per cent to $85.52 per barrel.

The dollar fell against a basket of major currencies after Britain’s new finance minister Jeremy Hunt axed much of the government’s so-called “mini-budget”, lifting risk appetite.

The dollar index against a basket of currencies dropped 0.82 per cent to 112.11. A weaker dollar makes oil cheaper for non-US buyers.