Oil mixed as crude prices rebound on rate hikes

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Oil mixed as crude prices rebound on rate hikes

Oil prices were mixed in early Asian trade after falling to their lowest settlement levels this year because of economic uncertainty and the possibility of higher interest rates.

At 0107 GMT, the price of crude oil rose 17 cents, or 0.2 per cent, to $79.52 a barrel. The benchmark fell below $80 for the second time in 2022, the second time in a row.

Tuesday's slump was the largest daily decline in Brent prices since September, which has traded in a $62 range this year.

Wall Street benchmarks fell on Tuesday due to uncertainty around Federal Reserve rate hikes and further talk of a looming recession.

Strong economic data or hawkish signals from other policymakers is a cause of these fears.

Data released on Monday showing U.S. services industry activity unexpectedly picked up in November and last week's robust U.S. payrolls report raised doubts about how soon the Fed might ease monetary policy.

Oil prices have dropped by more than 1 per cent for three consecutive sessions, giving up most of their gains for the year.

The Chinese service sector activity has hit a six month low, and European economies have slowed due to the high cost of energy and rising interest rates.