SINGAPORE: Oil prices recovered on Thursday from a steep drop in the previous session, supported by tight oil supply and peak summer consumption, after a hefty U.S. rate hike sparked fears of slower economic growth and less fuel demand. The dollar index retreated from a 20-year high, easing downward pressure on oil prices. Investors remained focused on tight supplies and robust demand as Western sanctions restricted access to Russian oil. "Tight fundamentals suggest any dips in oil prices are likely to be short-lived, or shallow, or possibly both." Also, optimism that China's oil demand will rebound as it eases COVID-19 restrictions supported the price outlook.

Source: The Star June 16, 2022 17:44 UTC