NNA – Oil prices held steady on Tuesday as investors weighed strong holiday travel in China that could boost fuel demand against the prospect of rising interest rates elsewhere, slowing economic growth.
Brent crude fell 3 cents to $82.70 a barrel at 0620 GMT, while U.S. West Texas Intermediate crude also eased 3 cents to $78.73 a barrel.
Oil futures had risen more than 1% on Monday on optimism that holiday travel in China would increase fuel demand in the world’s second-biggest economy.
Bookings in China for trips abroad during the upcoming May Day holiday point to a continued recovery in travel to Asian countries. Still, the numbers remain far off pre-COVID levels, with long-haul airfares soaring and not enough flights available.
“Investors expressed optimism that Chinese holiday travel would boost fuel demand in the world’s largest oil importer,” said Leon Li, an analyst at CMC Markets.
“In addition, expectations for a slowdown in U.S. gross domestic product growth in the first quarter prompted a pullback in the U.S. dollar index yesterday, supporting gains in oil prices.”–Reuters
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