Oil creeps higher ahead of looming central bank rate hikes

​Brent oil edged higher toward $93 ahead of several global interest-rate decisions that are expected to see further monetary tightening.

The Fed and other central banks from Europe to Asia are expected to deliver interest-rate hikes this week as they seek to tame rampant inflation that’s taken a toll on demand. Brent futures rose by almost 1 per cent Tuesday and remain within the $10 band in which they have fluctuated this month.

Crude has lost about a third of its value since early June, erasing all the gains made in the wake of Russia’s invasion of Ukraine, as concerns about a global slowdown weighed on demand. Liquidity also thinned, leading to volatile price swings, while a stronger dollar has added to headwinds.

“The whole market waits for how hawkish the Fed meeting will be,” said Keshav Lohiya, founder of consultant Oilytics. “Risk-on assets continue to remain on edge.”