Oil prices edged down as curbs to restrict the coronavirus surge in top crude importer China and worries of an economic slowdown across the world flagged worries of a potential hit to fuel demand.
China’s coronavirus cases are surging at the fastest pace since late May. Investors were concerned about the possibility of a repeat of Shanghai’s two-month lockdown, which snapped global supply chains.
Western nations imposed widespread sanctions on Moscow over its invasion of Ukraine that have obstructed supply chains.
Fears of another disruption were eased after a Russian court overturned a previous ruling suspending Caspian Pipeline Consortium’s (CPC) operations amid a global oil supply crunch.
U.S. oil majors Chevron and Exxon are one of the consortium’s largest shareholders.
Gold slumps to 9-month low on dollar rally
Gold prices slipped to a nine-month low on Tuesday as the dollar continued its rally while investors looked out for U.S. inflation data that could make the Federal Reserve make the Federal Reserve more aggressive in its policy.
The dollar soared to a 20-year peak, making green-back-priced gold less appealing for holders of other currencies.
On investors’ radar was U.S. CPI data due on Wednesday that would provide cues on the health of the economy and shape monetary policy action by central banks.
Central banks across the world have been hiking interest rates in an attempt to rein in inflation.Atlanta Fed President Raphael Bostic flagged the need to hike interest rates later this month and said the lack of month-on-month improvement could warrant the hike.
Bostic said recent inflation data “has not been as encouraging as I would have liked.”
