Oil prices up slightly after slump on supply worries

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Oil prices up slightly after slump on supply worries

Oil prices went up slightly on Tuesday after falling sharply in the previous session on worries that continued COVID 19 lockdowns in China would eat into demand and the U.S. dollar rose to a two-year high.

The price of crude futures rose to $102.57, up 25 cents, or 0.2%, and the U.S. West Texas Intermediate contracts rose to $98.70, up 16 cents, or 0.2% at 0002 GMT.

Both contracts had settled down around 4% on Monday, with Brent down as much as $7 a barrel in the session and WTI dipping around $6 a barrel.

The lockdowns in China to counter COVID in Shanghai have been dragged into their fourth week. Concerns about other Shanghai-style lockdowns have resulted in mass testing, including in Beijing's largest shopping district.

The next major move for crude prices will be determined by the testing of 12 districts over the next five days and the hit from Chinese lockdowns, according to Edward Moya, senior market analyst for OANDA.

Oil is more expensive for other currency holders because of the U.S. dollar hitting a two-year high on Monday.

The supply fears are not the primary focus for energy traders, but now you have a surging dollar that is adding pressure to all commodities, OANDA's Moya said.