Oil prices edged higher on Tuesday, August 29, as supply concerns from a hurricane hurtling towards the US Gulf Coast limited the bearish sentiment about the possibility of another US interest rate hike undercutting demand. Brent crude rose 53 cents at $84.95 a barrel, while US West Texas Intermediate crude edged 42 cents higher to $80.52 a barrel.
The price of oil has been volatile in recent months, as investors have weighed the impact of rising demand against the possibility of more US interest rate hikes. Higher interest rates could dampen demand for oil by making it more expensive to borrow money.
However, the threat of Hurricane Ida, which is expected to make landfall in the US Gulf Coast on Wednesday, has helped to support oil prices. The hurricane could disrupt oil production and refining in the region.
China’s economic stimulus measures have also helped to support oil prices. The Chinese government has announced a number of measures to boost its economy, which has been slowing in recent months. These measures include tax cuts and infrastructure spending.
The oil market is expected to remain volatile in the near term, as investors continue to weigh the various factors that could affect prices. However, the supply concerns from Hurricane Ida and China’s economic stimulus measures could help to support prices in the coming weeks.
