Oil recovers from fall amid optimism about China

Oil prices rose on Tuesday. This happened due to sharp losses in the previous session, which resulted in an opportunity for profitable purchases, as well as the fact that markets have bet on the recovery of demand in China. However, concerns over rising interest rates in the U.S. are keeping investors on edge. 

On Monday, oil markets were again under pressure from sellers after the release of stronger-than-expected U.S. economic data, which increased fears over continued inflationary pressures, which could keep interest rates high for longer than expected. This has strengthened the dollar and negatively impacted oil prices. 

At the beginning of the week, crude oil prices were on the rise amid optimism about the reopening of Chinese exchanges. However, this optimism was quickly suppressed by the release of data from the US, as well as uncertainty about oil supplies from Russia amid a new Western ban on supplies from that country.

Oil markets are expected to be in a rangebound ahead of the next US Federal Reserve meeting.

The Fed is projected to raise interest rates by 50 basis points next week, a relatively small amount.