Oil Prices Little Changed In Choppy Trade

Oil prices were fluctuating on Tuesday after three consecutive sessions of gains on hopes of increased demand for oil from China.

Benchmark Brent crude futures edge up 0.1 percent to $79.73 in choppy trade, while WTI crude futures were up 0.2 percent at $74.81.

Oil prices traded lower in Asian trading before seeking a rebound to trade on a flat note in European trade.

While hopes of demand recovery in China offered some support, the upside remained capped by concerns that higher U.S. interest rates will dent fuel demand.

U.S. rate hike worries returned to the fore after two Fed officials said the Federal Reserve would likely raise interest rates to above 5 percent and hold them there for some time in order to keep inflation under control.

Investors were also reacting to reports suggesting that Russia is working on additional measures to limit discounts to international benchmarks. Russia is the world’s second largest oil exporter after Saudi Arabia.