Oil prices remain stable as an increase in Fed rates could reduce fuel demand

After gains in the previous period, oil prices underwent some change on Tuesday, following concerns that the world’s largest consumer of crude oil may see lower economic growth after US interest rates rose to fight inflation.

At 0136 GMT, Brent crude futures for November delivery were down 7 cents, or 0.1%, at $91.93 a barrel.

US West Texas Intermediate crude for October delivery fell 14 cents, or 0.2%, to $85.59 a barrel. The October contract expires on Tuesday, while the most significant trade for November was at $85.20, down 16 cents, or 0.2%.

Ahead of several central bank conferences this week, led by the US Federal Reserve, which is expected to raise interest rates by another 75 basis points to combat inflation, the dollar boosted against a basket of major currencies on Monday.

Dollar assets cost more to holders of other currencies when the dollar is stronger.

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According to a preliminary survey released on Monday, US crude oil inventories are expected to rise by about two million barrels in the week leading up to September 16.

The US Department of Energy will extend the timing of the auction plan by 180 million barrels of stockpiles to control fuel prices, and sell up to 10 million barrels of crude oil from the same Strategic Petroleum Reserve for shipment through November.

The stalled Iran nuclear deal still prevents the country’s exports from fully returning to the real economy, which will support prices to some extent.

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The French foreign minister said it was up to Tehran to make the decision, as the window to reach an agreement was closing, while Russia said on Monday that there were still issues in the negotiations that needed to be addressed.

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