Oil edged lower on Wednesday ahead of a panel meeting of OPEC+ ministers, as the market weighed expectations of supply tightness against fears that high interest rates could reduce fuel demand.
Brent crude oil futures dipped 6 cents to $90.86 a barrel by 0345 GMT, while U.S. West Texas Intermediate crude (WTI) , fell 5 cents to $89.18 per barrel. Data on Tuesday night showed that U.S. job openings increased by the largest amount in more than two years, prompting a further sharp rise in Treasury yields.
Along with fears that interest rates will stay high for some time, oil benchmarks also have been pressured by concerns that the strengthening dollar would dent demand, as it makes oil more expensive for holders of other currencies.
“A resilient labour market is deemed to be providing more room for the Federal Reserve (Fed) to keep rates high for longer,” said Yeap Jun Rong, market analyst at IG.
The Organization of the Petroleum Exporting Countries and allies, or OPEC+, is expected to keep output policy unchanged when it meets on Wednesday, after members Saudi Arabia and Russia extended output cuts to the end of the year.
